4 ms·
Since you can form a company for any reason, there is not always truly a 'fiduciary dury' to shareholders as often claimed
by platz 8y ago
Since you can form a company for any reason, there is not always truly a 'fiduciary dury' to shareholders as often claimed
- pzone 8y agoThat ceases to be the case once you start taking money from outside investors. You don't own the company anymore: the shareholders do.
- platz 8y agoI'll grant that may be the case here, or once you enter such a contractual agreement. However, I'll take issue with the ownership part. I don't think shareholders own the company, even if they wield the most influence by contract. In the u.s. corporations aren't truly owned by anyone - even the CEO . Corporations own themselves. That is why we give corporations rights and free speech and treat them as persons legally - corporations are not, in fact, property. So shareholders do not in fact 'own' the company, even if they can control it.