Linked by Thom Holwerda on Thu 5th Jan 2012 11:25 UTC
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RE[2]: stop the conspiracy theory
by unclefester on Sat 7th Jan 2012 05:56
in reply to "RE: stop the conspiracy theory"
RE[3]: stop the conspiracy theory
by B. Janssen on Sat 7th Jan 2012 10:42
in reply to "RE[2]: stop the conspiracy theory"
Yes. Directors are legally required to protect shareholder value. They can be sued for failure to do so.
Thanks for your answer. I've read of shareholders suing companies and/or managers. But those cases, like the current Lloyds of England case, are resting on misleading or false reports. The lawsuits are not about making losses or not maximising shareholder value. I'm not sure how that would work anyway.
So I'm not sure if your interpretation of the lawsuits isn't a bit extreme. I really would like to see some printed material about this, not to play the stupid "facts & authority" card on you, but because I'd like to learn more about this issue and my Scroogle-Fu seems to be weak





Member since:
2006-10-11
Is it? I mean, obviously you want a manager to take care of a company and make it prosper, but is there really a legal requirement to a) maximise shareholder value and b) that would make not selling whole or part of the company given a) illegal? This would not mesh well with civil liberties, don't you think?
Shareholder value is a rather recent idea (1980s, I think, by a guy named Rappaport) and companies were successful before. I'd really be surprised if somebody poured this idea into law. So, where would I find the law text that says maximising shareholder value is a company's duty?