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Nope. Feel free to cite whatever regulatory statute that legally demands profit maximization. Also when you buy a share of Apple you are not a part owner of th

by boh 4y ago

Nope. Feel free to cite whatever regulatory statute that legally demands profit maximization. Also when you buy a share of Apple you are not a part owner of the company. You are granted rights to board votes and cash flows in the form of dividends and that's pretty much it. Shareholder primacy is a 20th century marketing campaign to make people more comfortable with investing their money--as a shareholder you're entitled to very little and do not have legal rights to demand profitability.

cs702 4y ago
> You are granted rights to board votes and cash flows in the form of dividends Yes, exactly: Shareholders elect the board. Here's a question for you: What are the legal obligations to shareholders of those board members elected by the shareholders? (Hint: board members have a fiduciary obligation to act in the best interest of shareholders.)
- boh 4y ago
  Not very much. Just issue filings and have meetings to retain the company's corporate status. They may have unique contractual obligations that may result in a lawsuit should they not be fulfilled but those aren't necessarily "legal obligations" since it's subject to scrutiny (contracts aren't laws). edit: and in terms of "fiduciary obligation", maximizing profitability isn't one of them.
shukantpal 4y ago
> Also when you buy a share of Apple you are not a part owner of the company. This is totally wrong. > as a shareholder you're entitled to very little and do not have legal rights to demand profitability. Only if you are an isolated minority shareholder. If shareholders group together form a quorum (+ 50% of total ownership), they can demand anything from their company - including replacing the entire board and taking operational control of the company.