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A comment on The Tax Haven That's Saving Google Billions. Parent comment

Re:The Tax Haven That's Saving Google Billions by rdouble on Thursday October 21, 2010 @12:14PM (#1816085)
This is a counter to the commonly espoused internet-forum notion that there's some law corporations would be breaking if they don't engage in the most sociopathic behavior possible in order to "maximize shareholder value". There is in fact no such law. Bringing up Dodge vs. Ford is relevant, because that is indeed where the concept of "maximizing shareholder value" was brought up, and it's the only case ever cited.

The notion that shareholders can bring about a suit in the United States because Google is not dodging enough taxes enough is absurd.

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Re:The Tax Haven That's Saving Google Billions by RickHull on Thursday October 21, 2010 @12:14PM (#1816090)
What is the extent of a corporation's fiduciary duty to its shareholders then?

See http://en.wikipedia.org/wiki/Fiduciary#Relationships

Under Corporation-Stockholders, Dodge v Ford is not cited.

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Re:The Tax Haven That's Saving Google Billions by rdouble on Thursday October 21, 2010 @12:17PM (#1816098)
A corporation has no LEGAL fiduciary duty to "maximize shareholder value," that is just a business "best practice."

There are actual corporate laws regarding shares and shareholders and corporate boards and whatnot, but they are mostly about trying to keep the game clean and not defrauding people, not "maximizing shareholder value."

Edit: So long as we're referencing wikipedia...

http://en.wikipedia.org/wiki/Dodge_v._Ford_Motor_Company

"Dodge is often misread or mistaught as setting a legal rule of shareholder wealth maximization. This was not and is not the law. Shareholder wealth maximization is a standard of conduct for officers and directors, not a legal mandate. "

It's actually a very interesting case, because the DODGE in Dodge vs. Ford is actually the guys behind the Dodge motors brand. They were using their investment in Ford motors to make money in order to start their own competing car company.

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