Increasing Demands for Books and Records Reviews Puts Directors and Officers at Risk

Increasing shareholder demands to review and inspect a company’s books and records, often for purposes of obtaining information of alleged wrongdoing against senior management, are raising significant concerns for directors and officers. The increasing scope and frequency of these requests are not only resulting in higher costs for an organization, but also questions about director and officer liability.    

This article covers:

• Three recent cases illustrating this trend.
• Insurance solutions to address the risk.

_{Katten Muchin Rosenman LLP is a Marsh Securities Panel Counsel and Asset Management Panel Counsel firm.}