Corporate Governance

Corporate governance is a company's responsibility to oversee the fair and ethical compliance of policies and systems that maximize shareholder value and ensure fairness. Corporate governance includes the following:

When a company's board of directors breaches this important fiduciary duty, often the company's value will decrease, negatively affecting shareholders. In this case, shareholders have a right to bring a lawsuit in order to improve the company's oversight and ethical standards, and therefore its overall worth, and to help prevent future corruption and non-compliance.

Sturman LLC and Corporate Governance

Representing shareholders in shareholder derivative litigation, Sturman LLC aims to improve corporate governance when mismanagement resulting in corporate fraud and breach of fiduciary duty adversely affects 
the company and its shareholders. Corporate governance reforms 
can vary but may include:

  • Immediately removing wrongdoers from managerial/board positions
    of authority
  • Altering compensation
    policies and procedures
  • Changing internal accountability
  • Modifying management’s reporting responsibilities
  • Increasing number of independent directors
  • Adding board committees 
    to oversee management 
    and monitor misconduct
  • Improving upon the company’s public disclosure and transparency