Recently in Corporate Governance Category

Private consumer data can be a minefield, especially when you consider the complexity of data management systems and rapidly changing technology. Which is why Van Dang, Cisco's deputy general counsel, has decided to take a collaborative approach.

Dang recently created a cloud-based privacy compliance portal on the company's website. On it, she shares Cisco's privacy policy and compliance mechanisms, as well as a library of reference materials.

She even invites outside law firms and fellow general counsel to chime in.

Is your corporate board a "weak link" in your company's information security system?

Unfortunately, it might be.

Unlike other high-level executives, board members often function outside the brick and mortar company office. As a result, confidential information is often left on unsecured devices or email accounts on their personal computers.

In fact, a vast majority of companies are vulnerable to security issues according to a recent survey by Thomson Reuters Governance, Risk & Compliance.

Do Sarbanes-Oxley and startups make for terrible bedfellows?

Most corporate and in-house attorneys are familiar with the requirements of the Sarbanes-Oxley Act, which was passed in 2002.

Sarbanes-Oxley regulations came down at a time when Americans were outraged at the massive Enron scandal that cost shareholders and innocent employees millions.

The regulations were created partially to reduce the likelihood that similar financial catastrophes would ever surface again. And, one of the safeguards to prevent similar financial mishaps was Section 404 of the Sarbanes-Oxley Act.

The hacking scandal has already claimed News of the World, one of Rupert Murdoch's News Corporation's biggest tabloids. What's next for News Corp.? A U.S. investigation into the media giant?

Apparently so. Members of Congress are now clamoring for an investigation into the U.S. operations of News Corp., even though for the most part the hacking scandal originated from the same land where News of the World circulates: the United Kingdom.

It's an unfortunate reality for companies that actions abroad may have dire consequences back in the U.S. It's also a lesson that News Corp. may have to learn the hard way.

For health care facilities and doctors, social media can be a great tool, allowing medical providers to connect to patients in new ways, and helping facilities build brands, establish a place in the community, and increase education efforts.

But with social media comes an increased responsibility, along with an increase in legal liability.

If you represent any physicians or medical facilities, it might be time to have a conversation about the following risks.

A friend in need is a friend indeed. Former GlaxoSmithKline (GSK) lawyer Lauren Stevens may be asking for a little help from her friends.

Stevens, who was charged with obstructing a regulatory probe of GSK, has asked U.S. District Judge Roger Titus to order the Justice Department to name any uncharged individuals who may be called as witnesses at her upcoming trial, according to News Observer.

The insurance company for indicted financier R. Allen Stanford would like to be released from its responsibility to pay the massive legal fees mounting on Stanford's behalf. Stanford and two of his former company executives stand accused of bilking investors out of $7 billion in a massive pyramid scheme. Insurer Lloyd's of London argued to a federal judge the accused lied to investors and falsified financial statements and therefore should be disqualified from having their legal fess paid under the insurance policy.

U.S. District Judge Nancy Atlas heard the first day of arguments on Tuesday, August 24, according to the Associated Press. At this point, Stanford has received more than $15 million to pay his legal fees and those of his executives, Gilbert Lopez and Mark Kuhrt, in their criminal and civil cases. The policy will pay up to $100 million. Reportedly, Stanford has spent more than $6 million by hiring and firing attorneys from at least 10 different law firms.

Getting a letter addressed from a law firm can be cause to cause consternation, but one signed off by nine different law firms can lead to a medical condition.  Fortunately the letter sent to Securities and Exchange Commission (SEC) signed by multiple law firms was in support of its proposal to beef up shareholder rights.

Nine major securities and corporate governance law firms signed their support of the SEC initiative in a letter, in light of comments made by certain New York law firms challenging the SEC's proposed rule.  The SEC rule, called "Facilitating Shareholder Director Nominations" would require a company to include its shareholders' nominees for director in proxy materials.

It all comes down to accountability.

Now, attorneys are notorious for thinking they matter, a lot.  But Ethisphere.com has tried to employ some criteria to determine which in-house attorneys represent the creme-de-la-creme of corporate counsel.  The list spans all practice areas and includes federal agencies.  And, in the nouveau trend of social entrepreneurship, the list also takes into consideration top-notch public service, legal community engagement, and academic involvement.

Curious? We thought so.

In an interesting, but not shocking, corporate governance development, Google CEO Eric Schmidt announced  this week that he is stepping down as a director of Apple's eight-member board.  It is not merely coincidence that the news follows Google's June announcement of the company's development of ChromeOS--a laptop operating system--edging it closer to Apple's core business of laptop and desktop technology.  In fact, the Federal Trade Commission (FTC) has already raised an eyebrow at the inter-corporate nature of the board and any potential consequences of limiting competition.

Though Schmidt's departure detaches him from Apple's board after a three-year tenure, Google is still a part of the Apple pie, if by association.  Genentech CEO Arthur Levinson remains on the boards of both companies.