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Such a protocol can also be a deterrent for qualified director candidates.
In this case, Wachtell's bylaw could chill shareholder activist activity by making it harder to obtain qualified director nominees.
Companies warn the rule will lead qualified director candidates to refuse to serve rather than face the possibility of rejection by the shareholders.
Now, she said, a company typically "is not just looking for a woman, but for a qualified director" -- whoever that may be.
29, p. 52) General Mills' chief executive comments on giving shareholders more power in board elections, saying there are risks "such as the loss of qualified director candidates who do not want to participate in contested elections".
ATP plans to hire a qualified director in year one.
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It would allow the state to seek out and hire the best qualified directors for juvenile facilities.
However the board decides to proceed in organizing risk oversight, it must have a balance of qualified directors.
Good corporate governance includes being able to recruit and retain the most qualified directors based on experience and perspective, not on age.
And the great irony of this vicious cycle is that it's cutting out some of the most qualified directors of all.
Lawyers and accountants are increasingly specialised and expensive; bankers are less willing to take them public; qualified directors are harder to find, since even "non-execs" can go to prison if they sign false accounts.The great IPO famineEven when their firms do go public, the most successful technology entrepreneurs manage to preserve a lot of personal control.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com