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You just described the underlying problem with a suit such as this. There is a concept called the "business judgment rule:" if a shareholder sues the board for
by rp 19y ago
You just described the underlying problem with a suit such as this. There is a concept called the "business judgment rule:" if a shareholder sues the board for a breach of fiduciary duty of care, a court is unlikely to second-guess a business decision if it was made in good faith and was informed. So, the system does give deference to the judgments of the directors. Its existence is just buried deep in the folds. :-)
- mixmax 19y agoOk, thanks for the info. I wasn't aware of that. Maybe the system isn't as bad as it seems form the outside.
- mercurio 19y agoWell the US isn't as bad as the Europeans think :-) By the way, if this lawsuit upset you, then I really shouldn't tell you that Yahoo was already being sued for refusing to do a deal with Microsoft last year!