• peopleproblems
    link
    1510 months ago

    the “fiduciary duty” isn’t a real thing.

    they can fire and change who governs the board by using their majority share holder votes (which has been selecting short term max profit guys) but it’s a myth that they have a legal responsibility to return anything to shareholders

      • @HappycamperNZ
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        510 months ago

        Uh… its not illegal for an investment to not make money?

      • @[email protected]
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        fedilink
        3
        edit-2
        10 months ago

        Fiduciary duty is real, in many jurisdictions at least. It means that the executives of a company are required to act in the best interest of the shareholders. In 99% of the cases what shareholders want is maximum profit.

        But really, in almost every case where someone is found to be guilty of breaching this duty, it’s because they actually actively did something fraudulent. Otherwise it’s much easier for the shareholders or board to just fire the problematic people and get new ones. It’s not like being incompetent is a crime.

        for source you can look at eg. https://en.wikipedia.org/wiki/Fiduciary