RK&O Client Alert: Hedge Fund Managers with Employees on Public Company Boards, Part Two

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July 16, 2019

A hedge fund manager with a significant position in the common stock of a public company may find it useful to place an employee on the board of directors as a means of monitoring and protecting the manager’s investment. Board representation raises a variety of potential legal issues and concerns that merit the manager’s advance attention, with the assistance of counsel as appropriate. A prior companion client alert focused on mitigating the fiduciary duty tensions that exist when a hedge fund manager has an employee serving as a director of a public portfolio company.

In this second client alert addressing hedge fund managers with board representation, RK&O partners Scott C. Budlong, Michael D. Mann, Margaret W. Meyers, William Q. Orbe and James Q. Walker provide guidance on: protecting the director with corporate indemnification arrangements; preserving the legal privilege for communications between board counsel and the director; limiting the fund manager’s insider trading risk; and planning for a host of other potential securities law issues the manager may face.

Click here to read the client alert.

Related Publication

RK&O Client Alert: Hedge Fund Managers with Employees on Public Company Boards, Part One