4 ms·
It doesn't matter if the shareholders believe it is not the best move. It matters if the board believes it is the best move for the long term benefit of the com
by davidcbc 8y ago
It doesn't matter if the shareholders believe it is not the best move. It matters if the board believes it is the best move for the long term benefit of the company and its shareholders. The duty of loyalty does not require a board to do everything the shareholders want or to maximize short term profits. If a majority of the shareholders disagree they can vote to replace the board, but that doesn't mean the board hasn't met its fiduciary duty.