Comment on Raspberry Pi is now a public company
off_brand_@beehaw.org 5 months agoIt comes from the case against Henry Ford after he saw his company was making gobs of cash and decided to give some of that to his employees. Shareholders successfully sued him to stop this on the grounds that he has a fiduciary duty to shareholders.
en.m.wikipedia.org/wiki/Dodge_v._Ford_Motor_Co.
As with anything legal, there is nuance, but the basic assertion that there is fiduciary duty to shareholders is not wrong.
megopie@beehaw.org 5 months ago
He was sued for miss use of company profits, not for failing to maximize profits.
He took profits and payed outside the normal pay structure. This is not a case of him failing to maximize shareholder value or maximize profits, but failure to pay dividends with money that should have gone in to them.