[TriLUG] OT: PT One tech issue from tonight's debate

[Joseph Mack NA3T]

On Fri, 19 Oct 2012, Chris Merrill wrote:

>> Are you saying that
>>
>> "The only obligations a company has to its shareholders occur at bankruptcy."
>>
>> is false?
>
> That statement is devoid of any context. But as a broad 
> unqualified statement, it appears to be false.

Here's the original article

http://dealbook.nytimes.com/2012/06/27/challenging-the-long-held-belief-in-shareholder-value/

here's an excerpt

"
.. what the law actually says is that shareholders are more 
like contractors, similar to debtholders, employees and 
suppliers. Directors are not obligated to give them any and 
all profits, but may allocate the money in the best way they 
see fit. They may want to pay employees more or invest in 
research. Courts allow boards leeway to use their own 
judgments.

The law gives shareholders special consideration only during 
takeovers and in bankruptcy. In bankruptcy, shareholders 
become the "residual claimants" who get what's left over.
"

Joe

-- 
Joseph Mack NA3T EME(B,D), FM05lw North Carolina
jmack (at) wm7d (dot) net - azimuthal equidistant map
generator at http://www.wm7d.net/azproj.shtml
Homepage http://www.austintek.com/ It's GNU/Linux!