2 ms·
> 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
by 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 agoNot 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.