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> and your goal is to achieve maximum well-being of the company in, say, 3 years time Your fiduciary duty is to maximize shareholder profit. Not sure where you
by vasco 4y ago
> and your goal is to achieve maximum well-being of the company in, say, 3 years time
Your fiduciary duty is to maximize shareholder profit. Not sure where you got the "well-being" from, but your premise is utterly wrong so your presented choices and how you deal with them are not connected to reality.
- makomk 4y agoThere is no fiducary duty to maximise shareholder profit. It doesn't exist, it's basically made up. (There is a duty not to intentionally screw over shareholders, but that's far narrower.) In particular, most US corporations are incorporated in Delaware which has something called the business judgement rule, where so long as executives have reasonable belief that their actions are in the best interests of the business they're protected.
- gilbetron 4y ago> fiduciary duty is to maximize shareholder profit This keeps coming up and is kind of true, but not really. To quote the U.S. Supreme Court opinion in the Hobby Lobby case: “Modern corporate law does not require for-profit corporations to pursue profit at the expense of everything else, and many do not.” https://caselaw.findlaw.com/us-supreme-court/13-354.html https://caselaw.findlaw.com/us-supreme-court/13-354.html