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A comment on Seattle C.E.O. Who Promised $70,000 Salaries Wins Suit Filed by Brother. Parent comment

Re:Seattle C.E.O. Who Promised $70,000 Salaries Wins Suit Fi... by dragonwriter on Monday July 11, 2016 @01:01PM (#12072425)
As your own citation points out, that duty belongs properly to the board of directors (the CEO is often also Chairman of the Board of Directors, and many of the CEO's initiatives may be either directed by the Board or require its approval, so in those senses the CEO's actions may be subject to the Board's duty, but the duty is the Board's, not the CEO's.)
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Re:Seattle C.E.O. Who Promised $70,000 Salaries Wins Suit Fi... by CPLX on Monday July 11, 2016 @01:04PM (#12072451)
The defendant in this case was 60% owner of the company and as such can be presumed to be one and the same as the board of directors for purposes of this discussion.

With that said, the basic principle is that managers are considered to have a presumption of good faith in their business judgement with regards to disputes with shareholders over business strategy.

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