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The problem is its not just who has the most votes, but in the US, companies have a legal obligation to do what is in the best interest of the shareholders (eve
by abruzzi 15y ago
The problem is its not just who has the most votes, but in the US, companies have a legal obligation to do what is in the best interest of the shareholders (even minority shareholders) over all other claimants.
California just created a new corporation type that allows 'public benefit' to take precedence over shareholder interest:
http://www.alston.com/environmentalandlandblog/?entry=4488 http://www.alston.com/environmentalandlandblog/?entry=4488
- magicalist 15y agono they do not. not only is this not established in law (in fact, congress has made it harder for civil suits to be filed), they are almost never brought unless there has been a large drop in stock price (not for tepid or slower-than-desired growth), the ones that are brought are usually dismissed, and the ones that are not dismissed are almost universally settled. take a look at, for instance, http://en.wikipedia.org/wiki/Business_judgment_rule http://en.wikipedia.org/wiki/Business_judgment_rule
- marshray 15y agoPerhaps, but it's still such a widely held belief among businesspeople and shareholders that it's probably not a battle that would be wise to pick (very often).