Corporate Governance: 'Shareholder Primacy'

1 post / 0 new

Hello Friends,

I am wondering if anyone has more information about the legal history and basis for the idea of 'Shareholder Primacy' in corporate governance. As I understand it, this is basically the idea that corporations are beholden to the enrichment of their shareholders as a primary directive.

I believe there was a Supreme Court decision in the early part of the twentieth century (or thereabouts) that established that corporations need to operate for the enrichment of shareholders, however, I can't find a related case. The bottom line is that I'm interested in the legal constraints that make corporations beholden to increasing their shareholder's value.

Any information available is much appreciated. Thanks.

necessary_illusions's picture
necessary_illusions
Joined:
Jun. 13, 2010 8:55 pm

Currently Chatting

Should public radio program in the public interest?

NPR is supposed to be our national public radio, but they're barely covering climate issues that are in the public's interest.

Only one month ago, a national New York Times/CBS News poll found that half of all Americans think that global warming is already having a serious impact. Sixty percent of those surveyed even said that protecting our environment should be a priority “even at the risk of curbing economic growth.”

Powered by Pressflow, an open source content management system