Appeared on August 28, 2009
In an article about the abrupt resignation this month of two directors on Hershey’s board over the creation of a risk committee, Ralph Walkling, executive director of the Center for Corporate Governance at LeBow College of Business, said he questions why the formation of a separate committee would have inhibited the full board from entertaining the acquisition or sale of the company anyway.
“In general, on a typical board, just because you appoint a subcommittee to look at a particular issue does not mean you have relieved the full board of its responsibilities. The board still has oversight, and the subcommittee would still report to the full board,” he says.