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I don't believe the law spells out Corporations must act only for the profit of stockholders. If you look at Delaware's code for Corporations, it doesn't spell
by rawgabbit 1y ago
I don't believe the law spells out Corporations must act only for the profit of stockholders.
If you look at Delaware's code for Corporations, it doesn't spell out the duties of a corporate officer. https://delcode.delaware.gov/title8/c001/sc04/index.html https://delcode.delaware.gov/title8/c001/sc04/index.html
Legal cases said their duties are as follows. And "profit at all costs" is not one of them. https://en.wikipedia.org/wiki/Business_judgment_rule https://en.wikipedia.org/wiki/Business_judgment_rule
act in good faith;
act in the best interests of the corporation;
act on an informed basis;
not be wasteful;
not involve self-interest
In one case, fiduciary duty is actually defined as: good faith, loyalty, or due care.