Quote:
Originally Posted by SteveEisenberg
The belief that shareholders come first is not codified by statute.
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I'm now lawyer but that statement and the article it came from contradicted things I've heard all my life, so I did a bit of googling. It seems that fiduciary responsibility of corporate officers to shareholders is defined in the Sherman Anti-Trust Act, the Securities Act of 1933, the Securities
Exchange Act of 1934 and Sarbanes-Oxley, whatever that is.
Anyway that's my legal research for today.
I can't claim that I read it all or understood it all but it seems that it does contradict what was said in that article.
I suspect it's entirely reasonable for a corporate officer to make a decision based on the good of his community as long as it's not too harmful to his shareholders. I seriously doubt that it would be reasonable if he made all his decisions with that in mind.
I'm sure not going to say that Capitalism is a pretty thing. There's much about it that's ugly. But what are our choices?
Barry