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Companies are responsible for a group of shareholders with the majority voting right. Typically it is only a few shareholders as the ownership distribution fol
by _0w8t 4y ago
Companies are responsible for a group of shareholders with the majority voting right. Typically it is only a few shareholders as the ownership distribution follows a power law.
So a company is responsible to those few owners and that is it.
For example, Mark is the biggest shareholder in Meta with 16.8% of shares in 2021. Together with 2 other biggest shareholders they own over 30% of the company.
- eru 4y agoCompany management has fiduciary duties to all shareholders, not just the majority.
- tome 4y agoIt seems to me that this is extremely unlikely to be true under corporate law. Do you have a reference? In particular, there is no unique group or shareholders that makes the majority!
- _0w8t 4y agoEven if the law or corporate statute requires that owners of, say, 10% of shares should be able to raise the concern or even block big decisions like a sale of the company, in practice the ownership is very uneven. Just 10% of owners can own 90% of shares. For less drastic decisions where holders of 50%+1 or 2/3 of shares is enough agreement of board members and few more shareholders is often enough. And even with less skewed share distribution views of shareholders are very broad and the board does not have troubles to form the necessary majority. Surely shareholders coups are possible, but those are rare.