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Corporation is a mechanism to provide profits to the shareholders, while staying compliant with the appropriate rules and regulations. The corporations is not
by AbuelitaMia 3y ago
Corporation is a mechanism to provide profits to the shareholders, while staying compliant with the appropriate rules and regulations.
The corporations is not a machine to optimize for personal views of the founders, unless there are no other shareholders, or unless all the other shareholders are in agreement (something that might be impossible to achieve when amount of shareholders crosses certain threshold).
In other words, if you are accepting outside shareholders into your company, you are no longer allowed to make any decisions for any other reason than profit, not unless other shareholders would consent to it. This is the law.
However, as a shareholder, you have the right to choose who you would like to have on the board, for any sort of arbitrary reasons.
- codingdave 3y agoThat is not the law. Corporations are allowed to pursue any purpose they want. Many of them do pursue profit, but that is not legally required. (And that question has been taken all the way to the Supreme Court.)