Munger, Tolles & Olson’s Achyut Phadke and Brian Rivas Boessenecker Pen Article Discussing Ways to Limit Director Liability as Delaware Caselaw Evolves

Munger, Tolles & Olson partner Achyut Phadke and litigation associate Brian Rivas Boessenecker co-authored an article titled “Evolving Risk Oversight Obligations for Directors: Emerging Trends to Watch,” published by Board Leadership.

In the article, Mr. Phadke and Boessenecker examine how corporate directors’ responsibilities are changing in response to emerging business and legal risks. They identify four key areas directors should focus on to limit oversight liability, including:

• Cybersecurity: Directors must ensure compliance with regulatory mandates and designate committees responsible for cybersecurity oversight.
• Artificial Intelligence (AI): Directors should balance the business potential of AI with increased regulatory scrutiny and ensure accurate disclosures regarding AI use.
• Books and Records Requests: Directors should maintain thorough records of board activities to address potential oversight claims effectively.
• Environmental, Social and Governance (ESG) Issues: Directors must stay informed about emerging regulatory requirements related to climate disclosures and board diversity.

Read the full Board Leadership article. (Subscription may be required)