John Cannon, chair of Stradling’s litigation practice group, was quoted in an article, “Intel’s CEO Krzanich Resigns: A Warning for Boards,” for Directors & Boards. The CEO of Intel resigned after an internal investigation discovered his relationship with an employee. Cannon stated that one of the most important aspects for a board to address is “whether the policy involved is the right policy to protect the interest of shareholders.” It is imperative that management implement reasonable policies because the adoption of a rigid policy can have benefits and drawbacks. “The board’s active involvement in independently investigating the implementation of policies by management can provide an early warning system,” and once the company becomes aware of a violation, they board must complete a thorough investigation and enforce reasonable consequences. Read the full article here.