Matthew Sherman Discusses the Evolving Role of Boards in Shareholder Communications

Matthew Sherman Discusses the Evolving Role of Boards in Shareholder Communications

In the March-April 2014 issue of Deal Lawyers, Matthew Sherman, President and Partner at Joele Frank, describes the recent trend of increased communications between public company board members and shareholders. He explains that board members often play a critical role in communications with shareholders during proxy contests, and that board engagement with shareholders outside of the proxy process is also occurring more frequently as investors are increasingly taking a more active interest in leadership, strategy and corporate governance at the companies in which they invest. Sherman notes that this dialogue can “provide a board and management team with critical insights into the mindset of its investor base, bolster that company’s credibility and corporate governance, and in certain instances, head off any interest or approach from an activist investor.”