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And then the board and executive get sued for failing to maximize shareholder value. It's literally a violation of federal law.
by xyzzy21 5y ago
And then the board and executive get sued for failing to maximize shareholder value. It's literally a violation of federal law.
- gdulli 5y agoOften repeated, but not true: https://caselaw.findlaw.com/us-supreme-court/13-354.html https://caselaw.findlaw.com/us-supreme-court/13-354.html
- VerminOctopus1 5y agoYou’ve posted this several times in this thread and it is not correct.
- themitigating 5y agoI wish hackernews had more moderation and could ban people for lying
- perardi 5y agoEven if that was really a law, which it isn’t… …what if they board believes they are maximizing shareholder value in the medium or long term? What if they sincerely believe Musk would be a fickle CEO, and would make changes to the platform that would harm ad growth?
- tomhoward 5y agoThe fiduciary obligation is to act in the company's (not shareholders') best interests, not to maximise (short term) shareholder value. If the board has grounds to believe they can increase the value of the company over the long term by more than Musk's present offer is doing, they're right to do this and are legally safe.