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4

In the United States, there's an abstract duty act in for the profit of stockholders, but there's no duty to do anything specific. Donations to charity are specifically allowed, for instance. (See AP Smith Manufacturing Co. v. Barlow ) The big, classic case about this is Dodge v. Ford Motor Co., which is one of the only cases where the company executive lost....


3

It doesn't matter in reality if they are legally required to (maximize it), because the way to maximize it is not strictly defined. Maximize for the next dividend? Or for the next year? Or for the company's situation in a decade? And how do you maximize the value returned to the investor over the next decade? There is no obvious answer, or we would not need ...


4

When you give money to somebody with instructions on how it is to be used, it isn't a gift. That means the rest of the transaction also collapses. Sometimes this is called the step transaction doctrine. (1) the "end result" test, under which the transaction will be collapsed if it appears that a series of formally separate steps are really ...


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