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Asking for help here. There was a similar court case in the 80s. I believe it was a shareholder lawsuit and that it went all the way to the Supreme Court. The
by euroderf 4y ago
Asking for help here.
There was a similar court case in the 80s. I believe it was a shareholder lawsuit and that it went all the way to the Supreme Court. The court was asked whether a company can take into account a variety of stakeholder & community interests in its decisionmaking, or must it seek to maximize shareholder return.
In the case, the court ruled that shareholder return is the only legitimate goal.
I suspect this case was very influential, and I would be grateful to anyone who can track it down.
- hgsgm 4y agoThe point is that the meaning of "seek to maximize shareholder return" is defined almost entirely by management, not shareholders. That's what "management" means.
- bradleyjg 4y agoI don’t know of any such case, and I don’t see why it would be in front of the US Supreme Court. Burwell v Hobby Lobby Stores Inc. has language to the opposite conclusion, but it’s dicta.