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To fulfill their fiduciary duties, directors of Delaware corporations should ensure that in making decisions in the interests of stakeholders, their focus is on stockholders' long-term interests.
Is stakeholder capitalism inconsistent with the interests of stockholders? We think not. In many instances, the longer-term interests of a company's stockholders will be served by decisions that advance the interests of stakeholders. Make no mistake, though, current Delaware law puts stockholders in the pole position. To fulfill their fiduciary duties, directors of Delaware corporations should ensure that in making decisions in the interests of stakeholders, their focus is on stockholders' long-term interests.
Download >> Taking the Long-Term View: Reconciling Stakeholder Capitalism With Stockholder Primacy
Originally published in Law.com, Corporate Counsel, September 14, 2020
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
