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I thought it was literately illegal for publicly traded companies not to put profit first unless they were registered as a non profit (or similar special busine
by jay_kyburz 5y ago
I thought it was literately illegal for publicly traded companies not to put profit first unless they were registered as a non profit (or similar special business classes)
- detaro 5y agoThis is mostly a myth: https://www.nytimes.com/roomfordebate/2015/04/16/what-are-corporations-obligations-to-shareholders/corporations-dont-have-to-maximize-profits https://www.nytimes.com/roomfordebate/2015/04/16/what-are-co...
- WillPostForFood 5y ago“utterly false” to quote the article.
- jay_kyburz 5y agoThanks. TIL! Directors must use their powers in “the best interests of the company.” but "business judgment rule gives directors nearly absolute protection from judicial second-guessing about how to best serve the company and its shareholders."