alex8022
Joined 14 years ago
Joined 14 years ago
As an example, it would be easy to make the case that reducing the dividend to build a new factory is in shareholders' best interest. It would also be easy to make the case that they shouldn't open a new factory, and instead increase the dividend. Which option they choose is a bit subjective, and a judgement call, but neither would breach their fiduciary duty.
Choosing a much higher cost supplier, that is owned by their husband or wife, probably would breach fiduciary duty.
Obviously, these are edge cases (we'll never be 100% passive), but there is some concern that there will be a lock-in effect for companies currently in the S&P... It will be harder to grow if you're not in it, and it'll be harder to fail if you are.
http://www.nolo.com/legal-encyclopedia/whats-the-difference-...
I'm asking because I find it hard to believe (almost impossible) that 90% of white people have never spoken to a black person.
If you hire someone who doesn't have integrity, you want them to be dumb and lazy to limit the damage they can cause.