4 ms·
have you ever seen a shareholder that doesnt like a monopoly, winner-takes-all investment? this is the wet dream of investors. ensuring the system does not deg
by nologic01 3y ago
have you ever seen a shareholder that doesnt like a monopoly, winner-takes-all investment? this is the wet dream of investors.
ensuring the system does not degenerate is the job of regulators.
- mminer237 3y agoI think the point is that shareholders' preference isn't the legal standard. The board can make moves the shareholders absolutely hate and which lose money in the short-term, but as long as the board reasonably thinks it's in the shareholders best interest, they can't do anything about it legally. (Other than vote out the board over time.) Of course, regulation is needed to stop a bad board.
- datavirtue 3y agoYou can setup a company where the board is static and very dysfunctional. Lived it. Company grows and grows and you can't get rid of the founder who has clearly reached the "Peter Principle" stage. Very painful to be an investor or employee at a place like that.