Re:Patent war goes nuclear: Microsoft, Apple-owned “Rockstar...
by bradleyjg on Friday November 01, 2013 @05:45PM
(#6656683)
> Would shareholders be able to claim breach of fiduciary duties if they did?
By claim, I suppose you mean sue over? In that case the answer is no. There's this notion that companies legally have to be run so as to maximize shareholder value, and there's some case law in Delaware to support that notion. But what overlooked is the context of those decisions. Invariably the litigation has to do with change of control or measures designed to encourage/discourage same. Outside of those contexts, the business judgment rule reigns supreme. So long as there's no self dealing and the company doesn't lie in its public statements, it is almost impossible for a shareholder to win a derivative breach of fiduciary duty case.
By claim, I suppose you mean sue over? In that case the answer is no. There's this notion that companies legally have to be run so as to maximize shareholder value, and there's some case law in Delaware to support that notion. But what overlooked is the context of those decisions. Invariably the litigation has to do with change of control or measures designed to encourage/discourage same. Outside of those contexts, the business judgment rule reigns supreme. So long as there's no self dealing and the company doesn't lie in its public statements, it is almost impossible for a shareholder to win a derivative breach of fiduciary duty case.