4 ms·
Fairly certain he’s referring to Dodge v. Ford Motor Company, where it was established that a company needs to operate in the best interests of shareholders abo
by dinero_rojo 3y ago
Fairly certain he’s referring to Dodge v. Ford Motor Company, where it was established that a company needs to operate in the best interests of shareholders above all else.
https://en.wikipedia.org/wiki/Dodge_v._Ford_Motor_Co.?wprov=sfti1# https://en.wikipedia.org/wiki/Dodge_v._Ford_Motor_Co.?wprov=...
- euroderf 3y agoAlso IIRC there was a case before the Supreme Court where the dispute was whether shareholder value was the sole & supreme goal, or there could be other factors involved from other stakeholders (such as workers, the community, ...). The Supremes ruled for shareholder value. However I forget details of ths case. If anyone here happens to know what case I am referring to, please chime in.
- dragonwriter 3y agoYou are probably thinking of the case described in GP, which is the decision of the Michigan Supreme Court on this issue.
- euroderf 3y agoI should have added, this was a case back in the 1980s.
- ameister14 3y agoI don't know of a case where the Court affirmed shareholder primacy - as far as I am aware it's a state by state thing though since Delaware has it in their code it impacts a massive number of corporations.