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> fiduciary obligations of maximising net returns on invested capital There is no such obligation. Please stop spreading bullshit. Edit: To those who don't
by vonmoltke 8y ago
> fiduciary obligations of maximising net returns on invested capital
There is no such obligation. Please stop spreading bullshit.
Edit:
To those who don't believe me, see another post in the thread[1] or other sources on corporate law[2][3]. Note that the duty of loyalty says nothing about maximizing anything, and such a legal standard is preposterous.
[1] https://www.nakedcapitalism.com/2014/01/myth-maximizing-shareholder-value.html https://www.nakedcapitalism.com/2014/01/myth-maximizing-shar...
[2] https://www.legalmatch.com/law-library/article/corporate-fiduciary-duties.html https://www.legalmatch.com/law-library/article/corporate-fid...
[3] https://www.nolo.com/legal-encyclopedia/fiduciary-responsibility-corporations.html https://www.nolo.com/legal-encyclopedia/fiduciary-responsibi...
- Devils_Avocado 8y agoWhat do their contracts say? Agnostic of your own judgement of the morality of their actions, company agents are employed by shareholders to maximise returns on invested capital. It's literally the only reason the company pays them a salary from net profits.
- vonmoltke 8y agoCompany agents are not employed by shareholders and have no contracts with them. Company agents are employed by the corporate entity.
- Devils_Avocado 8y ago...and who owns the corporate entity? The "owners of shares"?