Companies can prepare now for the likelihood of congressional investigations if Democrats gain control of the House and/or the Senate, we explain in the lead article in this issue of The Informed Board. Democrats have signaled where they hope to focus, which provides a roadmap for preparations.
Three other articles explain the impact of recent changes at the SEC. One could curtail some shareholder activism in the short term. Another alters the best ways for companies to respond to shareholder proposals. And a new enforcement team has been formed to scrutinize public company financial reporting.
In an article and our podcast, we describe the implications for companies as states step in to regulate AI and pursue consumer protection, Big Tech and antitrust cases where the federal government has not acted.
In an interview, a director provides concrete tips on how companies can prepare for a crisis, even though they don’t know what form it will take.
Finally, we highlight a new Delaware court ruling that stresses how hard it is for plaintiffs to succeed with claims that directors acted in bad faith.
It’s Time to Start Preparing for Congressional Investigations
Companies should consider preparing now for the possibility of congressional investigations if the Democrats gain control of the House or the Senate. Democratic lawmakers have already indicated some of the companies and relationships they hope to scrutinize.
SEC Forms Beefed Up Enforcement Unit to Focus on Public Companies
The SEC’s creation of a consolidated enforcement unit devoted to public company financial reporting will allow the agency to pursue more complex cases, and will likely result in more investigations. It’s a good time for boards to take a fresh look at their companies’ accounting, reporting and disclosure processes.
The SEC’s ‘Hands-Off’ Policy Alters the Calculus for Excluding Shareholder Proposals
The SEC staff no longer evaluates the reasons companies give for excluding shareholder proposals. That can make it more complicated for a company to decide whether to exclude a proposal from its proxy statement.
Director Interview: Preparing for the Crisis You Inevitably Can’t Anticipate
Crises often arise from a confluence of unpredictable events. But boards can prepare by defining responsibilities and lines of escalation, engaging outside counsel and PR agencies in advance, and by stressing policies protecting critical communications.
A Guide to Coping With Divergent State AI Regulations
In the absence of federal legislation, a growing number of states are enacting laws to regulate the development and use of AI, with widely varying requirements. We suggest ways that companies can approach compliance in this fragmented landscape and prepare for further evolution of AI law.
Activism Update: Fewer Proxy Contests, More AI-Focused Themes
The technology sector accounted for the largest share of U.S. activist campaigns in the first half of 2026, with AI adoption a common theme. New SEC guidance requiring disclosure of investors in SPVs used by activists to run activist campaigns may impact activity in the near term.
Podcast: State AGs Step In Where They Think Feds Aren’t Doing Enough
As federal regulatory agencies have scaled back staff, narrowed enforcement priorities and, in some cases, declined to challenge significant transactions, state attorneys general are stepping in to fill the void with enforcement actions under state consumer protection, antitrust and privacy statutes, often teaming up across party lines. Skadden partners Ann Beth Stebbins, Andrea Griswold and David Wales discuss the areas states are targeting and what it means for companies and deals.
Delaware Court Reaffirms Deference to Directors in Risk Management Cases
A recent ruling emphasizes the high bar stockholders must clear when alleging bad faith by directors.
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