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> There is no law that says you must ... Isn't there? I thought shareholders has a legal remedy if they believed companies weren't maximising return?
by peteretep 9y ago
> There is no law that says you must ...
Isn't there? I thought shareholders has a legal remedy if they believed companies weren't maximising return?
- telchar 9y agoNo, the fiduciary duty the company has to shareholders is vague in this regard and practically speaking they can define the shareholders interest broadly, for example maximising returns at some indeterminate point in the far future. Shareholders can try to sue over this but almost certainly would lose the suit unless real malfeasance is uncovered. IANAL though.