Adhering to fiduciary duties to shareholders also includes protecting the company’s relationship with its customers and its long term sustainability. Cashing out while burning out all the bridges is the opposite of protecting the legitimate rights of the shareholders.
Adhering to fiduciary duties to shareholders also includes protecting the company’s relationship with its customers and its long term sustainability. Cashing out while burning out all the bridges is the opposite of protecting the legitimate rights of the shareholders.
If shareholders take you to the court for not prioritizing short-term profit at all costs, are you willing to defend this position?
Yes.
The board must put the interests of shareholders above other stakeholders, but those interests consist of a lot more than just immediate revenues.