Re:Meta employees grill Mark Zuckerberg at all-hands meeting...
by eru on Saturday March 18, 2023 @02:59AM
(#35206831)
Company management has fiduciary duties to all shareholders, not just the majority.
Re:Meta employees grill Mark Zuckerberg at all-hands meeting...
by fpoling on Saturday March 18, 2023 @06:29AM
(#35207842)
In theory yes, but in practical terms taking care of board members and few remaining big shareholders is enough.
Re:Meta employees grill Mark Zuckerberg at all-hands meeting...
by eru on Sunday March 19, 2023 @03:07AM
(#35216733)
'In practical terms', the other shareholders can still sue you.
Re:Meta employees grill Mark Zuckerberg at all-hands meeting...
by tome on Saturday March 18, 2023 @04:08AM
(#35207183)
It seems to me that this is extremely unlikely to be true under corporate law. Do you have a reference? In particular, there is no unique group or shareholders that makes the majority!
Re:Meta employees grill Mark Zuckerberg at all-hands meeting...
by fpoling on Saturday March 18, 2023 @06:26AM
(#35207826)
Even if the law or corporate statute requires that owners of, say, 10% of shares should be able to raise the concern or even block big decisions like a sale of the company, in practice the ownership is very uneven. Just 10% of owners can own 90% of shares.
For less drastic decisions where holders of 50%+1 or 2/3 of shares is enough agreement of board members and few more shareholders is often enough.
And even with less skewed share distribution views of shareholders are very broad and the board does not have troubles to form the necessary majority.
Surely shareholders coups are possible, but those are rare.
So a company is responsible to those few owners and that is it.
For example, Mark is the biggest shareholder in Meta with 16.8% of shares in 2021. Together with 2 other biggest shareholders they own over 30% of the company.