Icahn issues 'personally liable' warning to Yahoo board

Billionaire investor Carl Icahn has issued a warning to Yahoo's board of directors, mouthing the ever-fearful two words: "personally liable."

Carl Icahn

Icahn told Reuters on Tuesday that Yahoo directors may be held personally liable for signing off on the company's controversial employee-severance plans. That plan, as previously reported, could financially hamstring Icahn's dissident slate if it is successful in unseating Yahoo's board and taking a majority of the board seats.

"If they continue with this line, I believe they (the board) may be personally liable," Icahn told Reuters after speaking to the New York Financial Writers Association.

Basically, companies usually carry insurance to cover their directors against various liabilities. But, like any insurance plan, there is a cap on the coverage limits. Icahn apparently is anticipating that any legal action against the board may exceed those limits or is willing to argue that the board abdicated its responsibilities, thereby letting the insurance company off the hook.

[Thomas, David]

Icahn ... ugh

Yahoo is not, and should not roll for you.

[edaboy51]

I'm quite bugged having to be reminded every day that this billionaire is having a hissy-fit.

[someguy999]

I agree with cnet that it should be reported... but as well with the commenter that it doesn't have to be the top story every day. Frankly at this point updates on Yahoo has become a page 2 item, most of us realize we'll find out by August sometime what's the fate of Yahoo and until then its merely waxing philosophical...

[Sugiarto Setiabudi]

Personal liability is for breaching duty of care and duty of loyalty to the company.

So,Yahoo board obviously had discharged their fiduciary duty to the company and severance plan iis to deter company from illegal hostile take over by sick monkeys "business judgement rules"

Yahoo can seek disqualification order for Carl Ichan and his cronies

[drhamad]

While I don't want to see Y! sold to MS, Icahn owns a significant part of the company. The Board is hired by the shareholders - the shareholders are the owners. Icahn is a significant owner, though obviously far from the only one.

I wish he'd shut up, but he has every right to want certain things to happen in a company he owns a significant part of.

[GatesOfHell]

Icahnnot see this scaring anyone at all ... "... may be ..." ha!

Buzz off, you manipulative whiny billionaire twit!

[Remo_Williams]

The shareholders come third. The customers come first, the employees come second, and the shareholders last. This idea of shareholders as owners has been taken to its illogical conclusion far too long. This is not a matter of four or five shareholding owners, this is a public company getting bullied by a reprehensible human being. It should be a no-brainer.

-Remo

[fokkwp]

Yahoo lawyers are quaking in their boots, Big Carl . . .

[Seaspray0]

As the billionair dreams of selling yahoo to microsoft, he mutters, "I think Ichan. I think Ichan." but it will take until August to reach the top of the hill and microsoft may not be waiting for him at the platform at the end of the track to greet him with open arms. Ichan will become known as the little engine that could but didn't and everyone googled happily ever after.

[sunergeos]

Great, I have to continue to listen to an angry white billionaire fume over his delayed instant gratification of cashing in on someone else's work because those who had the fortitude to culminate their idea into a multi-billion dollar operation have the gall to continue to have confidence in their ability to run the company.

Why the nerve of those common idiots for not handing over all their money and bowing down prostrate at the command of Icahn!