The Board of Directors has a duty to exercise oversight of management’s operation of the business, as well as a duty to protect the corporation’s assets. To fulfill these duties, the Directors have the right to inspect company documents, subject to a duty of confidentiality.
I have railed a bit at Directors who don’t exercise sufficient oversight. But seldom do Directors get assailed for asking too many questions.
“University Regent Becomes a Lightning Rod,” Wall Street Journal, June 16, 2014 A6 http://on.wsj.com/1lsjYAr State lawmakers try to impeach a member of the Board at the University of Texas, for making too many document requests of school officials. Apparently, state legislators see the role differently than does the Director, who was looking into whether candidates for admission proposed by state legislators were getting preferential treatment. Does this affect the culture on the Board as a whole, or the University’s management?
Do your Directors know what their duties are? Do you?