Corporate directors can rest easy. If the decision in the Disney shareholders' suit and the results of an internal investigation at Krispy Kreme are any indication, board members are not going to be held as accountable as they once worried they might be. Oversight, such as it is, will be mostly up to senior executives, and the judge in the Disney case suggested that their duties as fiduciaries are pretty narrowly defined.
Still, out-and-out fraud continues to pose the risk of an extended stay in prison, at least for company officers who admit it or for those unlucky enough to have underlings who testify against them. Three more executives from WorldCom were sentenced to jail.
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