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Where I'm from you fire the board of directors if you think that they haven't lived up to expectations, or made as much money as you would like them to. You don
by mixmax 19y ago
Where I'm from you fire the board of directors if you think that they haven't lived up to expectations, or made as much money as you would like them to. You don't sue them for injury.
I think this is the best approach for several reasons:
1) The board can actually run the company as they see fit, and not worry about being bankrupted by a hedge fund that sues them because they have a different idea of how to run it.
2) A board constantly keeping to the middle of the road and only taking the choices that are absolutely safe with shareholders stiffle innovation.
3) Control of a company slips from the board to the legal system - which is definitely not good.
It is a pretty sad state of affairs - I would never want to be on the board of an American company.
- mercurio 19y agoAll I'm saying is that you can't take away the right to sue for perceived harm. Its all very well to declare that the US legal system is broken, but its not right to say that the shareholders should not be allowed to sue the board in such cases. Whether the case has merit is precisely the judgement that the courts are there to make.
- mixmax 19y ago"Whether the case has merit is precisely the judgement that the courts are there to make." Excellent point. I can only hope for the outcome :-)