Re:Powerless investors vote overwhelmingly to oust Mark Zuck...
by jogjayr on Tuesday June 04, 2019 @11:56AM
(#20096189)
> Shareholders sued and won because Ford owed and violated his duty to shareholders. [1]
I didn't know about this case so I read about it. It doesn't tell the whole story.
"In the 1950s and 1960s, states rejected Dodge repeatedly, in cases including AP Smith Manufacturing Co v. Barlow or Shlensky v. Wrigley. The general legal position today is that the business judgment that directors may exercise is expansive. Management decisions will not be challenged where one can point to any rational link to benefiting the corporation as a whole. "
I didn't know about this case so I read about it. It doesn't tell the whole story.
"In the 1950s and 1960s, states rejected Dodge repeatedly, in cases including AP Smith Manufacturing Co v. Barlow or Shlensky v. Wrigley. The general legal position today is that the business judgment that directors may exercise is expansive. Management decisions will not be challenged where one can point to any rational link to benefiting the corporation as a whole. "
1. https://en.wikipedia.org/wiki/Dodge_v._Ford_Motor_Co.