Dell agrees to corporate governance changes to settle lawsuit

Posted Sep 30th 2009 2:20PM by Brian White
Filed under: Insiders, Law, Dell (DELL)

Dell Inc. (NASDAQ: DELL) will be making corporate governance changes soon as a result of a lawsuit settlement.

Dell did not admit any wrongdoing (naturally) after a recent lawsuit accused certain Dell directors and employees of engaging in insider trading practices, as well as making false statements about the state of the company's business.

In what seems all too common these days, Dell's arrangement basically states that at least 60% of the board of directors come from an independent background (Wow -- 60%! Astonishing!). Executive sessions for these independent directors must also occur at least 60% of the time a regularly schedule board meeting takes place. Maybe these checks and balances will keep the boardroom shenanigans under control at Dell, eh?

Dell will also pay for each director to attend an accredited director education program every year. Each director will also have unfettered access to all Dell management and employees without some corporate silencer to get in the way. It would be great if all boards were required to be at least somewhat transparent in everything they do, and if you own shares of any public company, you should demand this.

Not that any boards will listen with attentive ears, though. The "good ole' boy" network is alive and kicking just as much as ever in boardrooms everywhere.

Tags: corporate governance, Dell, Dell governance, Dell lawsuit, inthenews