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Not quite. Public companies have a fiduciary responsibility to earn their shareholders money. This Hedge Fund manager is claiming that Apple's large cash reserv
by Afforess 14y ago
Not quite. Public companies have a fiduciary responsibility to earn their shareholders money. This Hedge Fund manager is claiming that Apple's large cash reserves are contrary to their fiduciary responsibility, and they need to only keep enough reserves so that normal business can continue, the rest being returned to investors.
- nicholassmith 14y agoAh that makes much sense. Although, how does someone define what reserves a company should keep for business to continue? Especially in the tech world where they might need to drop a billion dollars on an acquiring another company.
- CJefferson 14y agoTrue, but Apple now has enough money to buy Facebook, and Twitter, and still have $50bn left over. I'm not sure how much is "enough reserves", but it seems reasonable to me to expect Apple to justify it.
- Marazan 14y agoCompanies don't have any responsibility to the shareholders. Directors of the company do. However that responsibility does not extend to making money for the shareholders. In the UK and the US directors have a huge amount of latitude in running the company and it basically resolves down to making "good faith" decisions for the betterment of the company.