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True, but there definitely is a fiduciary duty, and shareholder derivative lawsuits for breach of that duty are definitely a thing. They are usually substanti

True, but there definitely is a fiduciary duty, and shareholder derivative lawsuits for breach of that duty are definitely a thing. They are usually substantiated by irresponsible decisions producing low returns. The analysis is complicated, but in the end, the more poorly the company you are managing performs due to your deliberate decisions, the more likely you are to elicit a shareholder derivative suit. Generally speaking, the best way to keep your shareholders happy is to make them money. In my view, this is as it should be. I’d rather executives in public companies not use my money to pursue their own personal moral crusades. They can use their own money to do that. As can I.

twobitshifter 5y ago
The shareholder lawsuits will go nowhere according to the business judgment rule, unless the board is engaged in illegal behavior. If Google chose not to collude with Facebook or lie to their customers about providing the best price, shareholders would have no cause to sue. Now that this has come to light, they may be more likely to sue if it’s deemed that information about project Jedi was withheld from shareholder reports and that information was important to understanding Google’s returns in banner ad auctions.