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A company has a fiduciary duty to the shareholders, who bought the stock on the assumption that the company will be run in their best interests. If they do't do
by lordgrenville 8y ago
A company has a fiduciary duty to the shareholders, who bought the stock on the assumption that the company will be run in their best interests. If they do't do that they are open to shareholder lawsuits. (This is the way that activist investors often work.)
- tjoff 8y agoA company does not have an obligation to be short sighted. This is also something the company can communicate to any investors. Is it really common for lawsuits against normal sized companies? (I'm not talking intel, facebook etc.)
- zeusk 8y agoActivist investors fight for power in board rooms, not in court rooms.