Director-shareholder engagement may not advisable for every board for a number of legitimate reasons. But there is no question it is an emerging practice. Those who have engaged say it is worthwhile and can be a powerful strategy to strengthen shareholder relationships in an age of increasing investor activism.
Delaware courts often set standards for what corporations are permitted to do. In May, the Delaware Supreme Court ruled that a corporation's board of directors can unilaterally amend the company's bylaws to include a "loser pays" provision that shifts all litigation expenses to a plaintiff who sues the company for intra-corporate wrongdoing.