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.