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> FB’s board has a legal obligation (fiduciary responsibility) to make money for shareholders. Capitalism may suck, but it’s the law. What US law states that t
by _bkyr 5y ago
> FB’s board has a legal obligation (fiduciary responsibility) to make money for shareholders. Capitalism may suck, but it’s the law.
What US law states that the board of any company has to make money for shareholders? I've tried finding it but haven't been able to. So what happens when a company fails? Does the board get prosecuted?
Facebooks - Board of Directors
- Mark Zuckerberg
- Sheryl Sandberg
- Peggy Alford
- Marc L. Andreessen
- Andrew W. Houston
- Nancy Killefer
- Robert M. Kimmitt
- Peter A. Thiel
- Tracey T. Travis
Alphabet - Board of Directors
- Larry Page
- Sergey Brin
- Sundar Pichai
- John L. Hennessy
- Frances Arnold
- L. John Doerr
- Roger W. Ferguson, Jr.
- Ann Mather
- Alan R. Mulally
- K. Ram Shriram
- Robin L. Washington
- dredmorbius 5y agoNote that for business, governing law is virtually always state law, both legislation and common (case) law. The most relevant law will be in Delaware (overwhelmingly popular for incorporation for its "business-favourable" climate), New York, and California. Semi-related tangent: in going through US Library of Congress classifications, under US case law, by an extreme margin the most detailed classifications of state law are for New York and California (I forget offhand which leads). I believe Pennsylvania and Florida are also among the larger. To an extent this is a synthetic artefact (classification schemas are created by librarians), though it probably reflects underlying complexity within the respective domains.