VEA Vice Chair Nell Minow is quoted in an article about an insider transaction that raises some very significant conflict of interest concerns.
Those are important details, said Nell Minow, the vice chairwoman of ValueEdge Advisors, which specializes in corporate governance. Before a public company approves a deal with fathers, sons or other related parties, it should obtain independent asset valuations and appoint an independent board committee to conduct a review, she said.
“The gold standard is for the people involved to bend over backwards to show transactions are arm’s length — especially when insiders are involved,” said Minow, a former president of Institutional Shareholder Services, a proxy advisory firm. Although the precise lines can be blurry, a failure to address the process in securities filings, she said, “is an enormous red flag.”