Allan Reich Quoted in The Wall Street Journal
"More Outside Directors Taking Lead in Crises"

The article "More Outside Directors Taking Lead in Crises" in the March 19, 2007 issue of The Wall Street Journal notes that independent board members typically provide oversight and monitoring of a company, while managers run operations. "But when a crisis erupts such directors increasingly are assuming a more hands-on role. Stronger governance standards adopted following corporate scandals -- and the prospect that directors could be held personally liable -- reinforce the trend. Every crisis is different, and the degree to which directors will -- or should -- get involved will vary. At the same time, directors must be careful not to overstep their bounds. "The board should never supplant the CEO's authority unless the CEO really lies at the heart of the crisis," cautions Allan J. Reich, a corporate attorney at law firm Seyfarth Shaw in Chicago. Boards "shouldn't cross the line into becoming managers or micro-managers," he adds."