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I 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 t
by mminer237 3y ago
I 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.