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0 pointssingleshot_2y ago0 comments

Where in that document are you seeing that non P.B.C. corporations are required to maximize shareholder value?

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This document only talks about PBCs, so it wouldn’t be in this document. I am using that phrase because that’s how people refer to fiduciary duty (and similar things) when speaking generally. Obviously there is a lot of complexity in the rules around corporate governance.

singleshot_OP2y ago

People do talk about the fiduciary duty to maximize shareholder value when speaking generally. They are wrong.

There are only two fiduciary duties in this context: the duty of loyalty and the duty of care. A director of a corporation owes no fiduciary duty to maximize shareholder value.

steveklabnik2y ago

Sure. I find it easier to use the same words everyone else uses in informal contexts even though there is obvious complexity and is not fully accurate.

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steveklabnik2y ago

singleshot_OP2y ago

People do talk about the fiduciary duty to maximize shareholder value when speaking generally. They are wrong.

There are only two fiduciary duties in this context: the duty of loyalty and the duty of care. A director of a corporation owes no fiduciary duty to maximize shareholder value.

steveklabnik2y ago

Sure. I find it easier to use the same words everyone else uses in informal contexts even though there is obvious complexity and is not fully accurate.

1 more reply

j / k navigate · click thread line to collapse