Forbes Q&A with Jeroen van Kwawegen: The Role of Shareholder Litigation in Preventing Abuses by Boards and Management
April 29, 2016
Forbes published an extensive interview featuring BLB&G partner Jeroen van Kwawegen, who discussed his experiences representing activist institutional investors in shareholder litigation challenging boards and management who have breached their fiduciary duties and infringed on shareholder rights.
According to Mr. van Kwawegen, BLB&G’s job “is to protect shareholders’ three fundamental rights: the right to sell shares, the right to effectively vote shares, and the right to hold fiduciaries managing investor money accountable for misconduct.” While the majority of boards and management generally act in good faith, “we become involved if directors favor their personal desires over the interests of shareholders,” he explains.
In the article, he provides a general overview of the different challenges that BLB&G and its clients have waged in order to protect the shareholder franchise, including successfully defeating “dead-hand” proxy provisions and board entrenchment measures that have been used by board members at various companies in an attempt to protect their personal interests at the expense of company shareholders.
Mr. van Kwawegen acknowledges that the majority of companies engage fairly with their shareholders when conflicts arise. However, should the process break down and Board members use their corporate powers to undermine their shareholders, Mr. van Kwawegen explains that “the threat of litigation to enforce investor rights positively affects the balance of power between boards and the shareholders.” He points out that litigation is “an arrow in the quiver of shareholder engagement that should be typically be used as a last resort.”
External Link: Click here for full article (link will open in a new window)
Also of Interest
Forbes Highlights Pivotal Role of Private Shareholder Litigation in Checking Corporate Misconduct
June 29, 2018
The National Law Journal Names Mark Lebovitch and Jeroen van Kwawegen 2018 Plaintiffs’ Lawyers Trailblazers
Dr. Anatoli van der Krans Joins Bernstein Litowitz Berger & Grossmann LLP
September 2, 2015
Historic Settlement Establishes Landmark Fox News Workplace Professionalism and Inclusion Council to Remedy Workplace Harassment Issues
November 20, 2017
Columbia Law Review Article on Sexual Harassment and Corporate Law Cites BLB&G’s Celebrated 21st Century Fox Litigation
June 18, 2018
Legal 500 Ranks BLB&G a National Tier 1 Firm for Securities and M&A Litigation
Legal 500 Again Ranks BLB&G A National Tier 1 Firm for Securities and M&A Litigation
Lawdragon Profiles Mark Lebovitch in “Lawyer Limelight” Q&A
October 8, 2015
Volkswagen Investor Settlement Foundation Established for Investors in Volkswagen Securities Trading Outside the US
February 10, 2016