MGibster
Legend
And for those that don't know, the business judgment rule is the principal that that default assumption is that management is acting in the interest of the corporation and its investors. It's to prevent frivolous lawsuits from investors based on corporate officers not making optimal decisions.There is also a thing called a business judgment rule, which means that if investors take the board to court to say that instead of doing A, the board should be doing B, the court will throw up its hands and say “damned if I know” and punt the whole thing back to the board.
Regarding investors and shareholders and the dividends paid to them, I've always viewed shareholders as the economic equivalent of the energy lost to heat and entropy in a mechanical system. Something that takes energy (or in this case, money) out of the system and makes it run less smoothky but which can;t be fully abrogated and must instead be minimized
Investment is usually good for a company in that it provides them with capital and it benefits the investor not only because of dividends but also because it mitigates some of the risks associated with running a business . The problem isn't your typical investor, who is usually content to let their stock sit for long periods of time generating dividends, it's when you have groups dedicating to gaming the system encouraging short term gains at the expense of the long term health of the company.