Wall Street Journal – Good news for Paul Sarbanes and Michael Oxley: The senator and congressman whose names were affixed to Congress’s corporate-reform legislation have been knocked out of firstplace on the list of bogeymen haunting the corporate boardroom.
The new leader: hedge funds.
That is the word from well-known lawyer Martin Lipton, who advises corporate executives and boards, entrenched and otherwise. Mr. Lipton sent his clients a memo at the first of this month that warned against overreacting to Sarbanes-Oxley, and instead listed the No. 1 issue for directors as “anticipating attacks by activist hedge funds seeking strategy changes by the company to boost the price of the stock.”
