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> In effect, TCI can't compel them to do anything they don't want to do. Yes, they can. It’s called fiduciary responsibility, and shareholders sue for it all t
by ramesh31 4y ago
> In effect, TCI can't compel them to do anything they don't want to do.
Yes, they can. It’s called fiduciary responsibility, and shareholders sue for it all the time.
- brewdad 4y agoIn the US you can sue anyone for anything. It doesn't mean you'll win a damn cent though.
- UncleMeat 4y ago"We took a 50 billion dollars and lit it on fire" is meaningfully different from "we structured our teams in a way that you think is inefficient."
- gumby 4y agoTheir fiduciary responsibility is not to defraud the shareholders. Milton Friedman’s idea that management’s only constituency is the shareholders is not actually a matter of law. Management can just say “in our judgement X is the right thing to do, not Y”. Google is too big for TCI to try to gain control over.
- baryphonic 4y agoCourts of law would beg to differ https://corpgov.law.harvard.edu/2021/12/01/dodge-v-ford-what-happened-and-why/ https://corpgov.law.harvard.edu/2021/12/01/dodge-v-ford-what...
- joshuamorton 4y agoThe wikipedia page pretty accurately summarizes why Dodge v. Ford isn't really a useful citation. Firstly, if an executive says "we believe this is in the interest of long-term shareholder value", the courts basically just defer to their judgement. You can't get the courts to run a company for you. And second, the precedent has been softened since 1916 (or wasn't even true at the time), and for example some corporations like B-corps explicitly reject it, without any legal consequences.