Linked by Thom Holwerda on Sun 29th May 2011 21:29 UTC, submitted by teigetje
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Member since:
2005-11-11
It's boardmember's responsibility to act in the interests of shareholders. But it's the shareholder's responsibility to elect (or fire) the board members.
This is closer to the truth. But there is a conflict there. Shareholders wants quick profits while the board also have to look at what happens to the company in the long run.
Example: Microsoft wanted to buy yahoo. It would have been a quick win for the shareholders, but yahoo themselves felt that in the long run it was smarter not to sell.
Those in charge aren't in jail today, so I will have to assume that they didn't break any laws by not giving the shareholders the quick profit they wanted.