Harold Meyerson’s contention that U.S. corporations are under no legal obligation to maximize profits was correct only in regard to statutory law [“ The myth of maximizing shareholder value ,” op-ed, Feb. 12]. It’s entirely a different matter, however, with case law, as evidenced by the large body of litigation brought for breach of fiduciary duty against corporate directors and officers over decisions that adversely affect corporate profits.
Simply put, corporations that do not — for whatever reason — maximize profits expose themselves to legal action. Perhaps Mr. Meyerson ought to be arguing for tort reform.
Bob Foys, Chicago
Harold Meyerson conceded, “When a company is for sale, its directors are required to do all they can to maximize its value.” Bulletin to Mr. Meyerson: A publicly traded company is always “for sale.” In fact, all companies are for sale under the right circumstances. Directors’ fiduciary duty to shareholders requires them to prepare for such circumstances. Anything less is a violation of the board’s duty to act in the best interests of the corporation.
Joe Crouse, Vienna
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