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We can dance around semantics, the point is corporations cannot do things that shareholders collectively find as bad for them. For example, corporations cannot
by vasilipupkin 7y ago
We can dance around semantics, the point is corporations cannot do things that shareholders collectively find as bad for them. For example, corporations cannot benefit employees at the expense of shareholders. If management decided to write a big fat check to employees and shareholders didn’t agree, they can call an emergency meeting cancel the check, fire management and appoint new management.
- vonmoltke 7y ago> they can call an emergency meeting cancel the check No, they can't. If management took an action that is within their power to take it cannot be reversed at shareholder whim. They can certainly throw out the current management and install new management who will attempt to reverse what the old management did, but what is done is done.