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

Powered by Pressflow, an open source content management system