"How the Board’s Brief Changes in Turnaround Mode"
Agenda | Jun 20, 2011
Article says a board’s ability to influence long-term strategy and hire and fire executives is paramount in a company turnaround; article mentions TMA.
“A board has different obligations when the company is in the ‘zone of insolvency.’ [Delaware courts have established that] directors have a chief obligation not the shareholders, but to the organization.”
James B. Shein, Ph.D., Northwestern University Kellogg School of Management (Chicago/Midwest Chapter)
“If a board feels it can’t do anything, the directors should resign.”
Harlan Platt Ph.D., Northeastern University (Northeast Chapter)
“[In a distressed company] directors should be presented with any decision that is going to modify the corporate footprint.”
John T. Young, CTP, Conway MacKenzie Inc. (Houston Chapter)
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