I had wondered about this very point. If Twitter's board turns down a high dollar deal, they open themselves to accusations of failing their fiduciary responsibility to the shareholders.
By Donald R. McClarey, JD
At bottom, the job of the members of the board of a corporation is to make sure that the corporation, within the bounds of the law, is acting in a manner which maximizes the value of the shares of the corporation. Act contrary to this duty, and suddenly you could be facing a shareholder suit asking why you breached your fiduciary duty to them. Most boards are filled with honorary stooges who rubber stamp the actions of the hired hands who run the corporation. In theory this is a dangerous activity, and I think Musk is about to make this theory a reality for the current denizens of the Twitter Board.
No comments:
Post a Comment
Comments are subject to deletion if they are not germane. I have no problem with a bit of colourful language, but blasphemy or depraved profanity will not be allowed. Attacks on the Catholic Faith will not be tolerated. Comments will be deleted that are republican (Yanks! Note the lower case 'r'!), attacks on the legitimacy of Pope Francis as the Vicar of Christ (I know he's a material heretic and a Protector of Perverts, and I definitely want him gone yesterday! However, he is Pope, and I pray for him every day.), the legitimacy of the House of Windsor or of the claims of the Elder Line of the House of France, or attacks on the legitimacy of any of the currently ruling Houses of Europe.