Activism via Board Control Often Requires Long Range View:
July 23, 2012 / Derek D. Bork, Thompson Hine LLP
When we first work with an investor who is seeking to become an activist, we often hear the same initial message: “We need board control. We need it ASAP. How can we achieve it now?” Although a path to obtain board control in a short period of time is sometimes left open by a company’s governance structure, this is not always the case. We have helped activists gain board control in as little as 56 days to as many as 590 days. In the cases where a quick strike is not possible, we counsel in favor of a longer term approach—one that involves obtaining minority board representation in the short-run with a strategy for achieving board influence over a longer time horizon.