Energy Company’s Internal Spat Reveals Business Complications

Energy Company’s Internal Spat Reveals Business Complications

How complicated can things become internally at a large company when business principals start to disagree concerning a material matter?

Readers of our business blog know well the answer to that essentially rhetorical question, of course: Things can become quite problematic, indeed, even reaching a point where a company shake up at the highest level seems the only solution to an otherwise intractable challenge to a contract dispute or other matter.

We submit a recent tale regarding one American company to prove the point.

Many of our readers across Arizona and elsewhere who are interested in energy matters likely know a thing or two about the Williams Companies. Among other things, Williams is a leading natural gas processor and pipeline product transporter.

Like most companies, Williams prizes harmony. And, like most companies, the energy giant isn’t always gifted by that prize.

In fact, and as reported by Bloomberg, Williams has been engulfed by turmoil in recent months, with its board of directors internally warring pursuant to vying viewpoints taken regarding company mergers and what one Williams’ document referred to as “strategic combinations” with other entities.

Some directors ardently pushed for change in a manner opposed by other members and the company’s CEO. Following a failed try to oust the CEO, six of Williams’ 13 directors recently resigned.

The news regarding Williams’ inner dissension and failed power play serves to underscore the point that business dealings at high levels in any American company are ever-complex and often fraught by complications that can yield material changes.

Unsurprisingly, both camps in the conflict stated that their preferred outcome optimally promoted the interests of Williams’ shareholders.

Call Cook & Price, PLC today at 480-407-4440 or email us through this website.

2017-09-28T06:05:55-07:00 July 26th, 2016|Categories: Contract Disputes|Tags: |

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