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[quote=Anonymous][quote=takoma][quote=TheManWithAUsername]...
Since the nickel profit case will never be brought, I’ll never have that cite at the extreme. But I don’t see why it’s on me to give a cite when it’s a logical conclusion from basic principles.

We agree that the directors have the duty to the shareholder. I assume that you agree that they have no legal duty to be moral other than that expressed in other aspects of the law.

I say that therefore no balancing is allowed, because in balancing the director would be sacrificing the interests of one to whom s/he owes a duty for those of someone to whom s/he owes no duty. That would be violation of a legal duty with no legal reason. Do you see a flaw there?

You say that they can weigh morality and reason* against the duty. Do you have any cite for that? If there’s nothing supporting that kind of balancing, then I consider the basic principle to be universal, therefore  applicable even at the extremes.

*I assume you meant “reason” here in the sense of “moral reason.”[/quote]
You speak of the duty of the management to the shareholders of Bain.  But once they buy up other companies, don't they assume a responsibility to those companies, i.e. to their stockholders and employees?[/quote]
They never owe a duty to the employees outside of contracts, tort law, employment discrimination law etc. - no general duty to employees.

I don't know this well, but as I understand it "mergers" (a misnomer, really - it's a buyout) usually (always?) result in the shareholders of the bought company owning stock in the buying company, so there would be that same duty. Remember that the fiduciary duty - what we're discussing - isn't a duty to follow their wishes, but to protect and pursue their (financial) interests. Think of them as the trustees of a trust - they must do what they believe is best for the beneficiary, not necessarily what the beneficiary wants.

[quote=anonymous]Also, when you say you are looking for a cite, do you mean a site or a citation?  I know people have started to use cite as a noun, but I'm not clear, given that the citation would be at a website, whether it's a new usage or a typo.[/quote]
"Citation." That's probably a law thing - I haven't noticed whether it's in broader use. "Hypothetical" (or "hypo") is also used as a noun.[/quote]

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