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Nope. Your citation refers to the status of customers with respect to other creditors. It says diddly squat about shareholders, who are below creditors in the
by gamblor956 4y ago
Nope.
Your citation refers to the status of customers with respect to other creditors.
It says diddly squat about shareholders, who are below creditors in the event of a bankruptcy. Because, in a corporate bankruptcy, shareholders generally lose their investment.
- iudqnolq 4y agoYes, I got that wrong. Absent bankruptcy, fiduciary duty to shareholders is prioritized over creditor's interests. In bankruptcy, customers will be screwed over to benefit the other creditors, not to benefit the shareholders as I mistakenly said.
- gamblor956 4y agoAbsent bankruptcy, fiduciary duty to shareholders is prioritized over creditor's interests. No, this is still wrong. Shareholders are not prioritized over creditors, at any time. Shareholders are the least important stakeholders in a corporation, because by virtue of their limited investment, they have the least at risk.