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Living Room / Re: Why I Pirate - An Open Letter to Content Creators
« Last post by 40hz on March 11, 2012, 11:15 AM »and the premise is the idea that yes, corporations are required to increase value for shareholders before anything else.-tranglos (March 11, 2012, 08:53 AM)
Possibly. (I still don't see where it says that in the law itself BTW.) Most of the argument is by extrapolation and assertion that "this is so" rather than actual wording in the law. And in this particular context it borders on applying reductio ad absurdum to the legal concept of "fiduciary responsibility." In short, a great way of thinking about it - except that's not what the law actually says - even if some people running some corporations might think so.
The reason this distinction is important is because it still doesn't give a business or corporation carte blanche to break the law in the name of maximizing profit. The judicial system has been very clear about that in numerous cases.
If corporations were always required to pursue maximization of profit under law, it would be allowed as an absolute defense in court , much like truth is defense against the charge of libel.
Just to be clear on US law, I bounced it off an attorney. She said it was a common misunderstanding of what the law requires of corporations and fiduciaries. "Just because most people might think the same way about something doesn't make it the law," she said. "As many people learn the hard way when they land in court."


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