5/10/2021 4:37:37 PM | less than a minute read

SPACs have taken off during the pandemic, and they’re looking for directors.

Get in touch

Joel I. Papernik

Member

Get in touch

Joel I. Papernik

Member

Many industry experts and others are being asked to serve on boards of Directors of SPACs. Such an invitation usually is accompanied by a request for investment. The position can be a lucrative one. Nevertheless, many of the same considerations that apply when one is invited to join any public Board are present in the SPAC context. Fiduciary duty and other obligations to investors should be considered seriously before accepting such a position.

Being a director of a public company is a serious responsibility that carries with it a fiduciary responsibility to the investors and a duty to make decisions in those shareholders’ best interest. And there’s always the risk to your reputation: You’ll remain a brilliant corporate leader if the SPAC succeeds, but all your past glory could be tarnished with a failing SPAC.

www.nytimes.com/...