Director Service — Is it Safe to Serve on a Public Company’s Board of Directors?
Lane Powell Shareholder Doug Greene authored an article in Seattle Business magazine’s February issue titled “Director Service — Is it Safe to Serve on a Public Company’s Board of Directors?” In the article, Greene discussed whether or not it is safe to serve on the board of directors for a public company, as well as a number of preventative measures that can be taken to mitigate the risk of liability.
Disclosure dilemmas and legal problems are a reality of business, and shareholder lawsuits often follow. So is it safe to serve on a public company’s board of directors? The answer is easy: Yes, it indeed is safe as long as the director is conscientious and has appropriate corporate protections against personal liability.
Shareholder lawsuits are frequent, but outside director liability is rare. Shareholder litigation almost never affects the personal finances of outside directors, due to a combination of factors.
Read the article (PDF).