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

Join Me at Sister Giant 3 - A Revolution of Love!

If you'll be in L.A. this weekend (March 28-29) join me at SisterGiant3 presented by Marianne Williamson...I'll be speaking on Saturday together with (former) Congressman Dennis Kucinich (D-OH) and Senator Bernie Sanders (I-VT) - for tickets and information go to http://sistergiant.com


Powered by Drupal, an open source content management system