PPRuNe Forums - View Single Post - Ethiopian airliner down in Africa
View Single Post
Old 20th Mar 2019, 21:38
  #2178 (permalink)  
yellowtriumph
 
Join Date: Nov 2015
Location: Here
Posts: 318
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by Rated De
The statutory duties of directors are not what you state as a 'mission' and maximise profits.
The board of any public company, is in the statute, required to act in good faith and the best interest of the company.
Pursuit of profit is not necessarily in the long term interests of the company owners.
For management may pursue all sorts of profit maximising activity which could include simply sell off all the assets. This may maximise 'profit' in the short term, but may damage the company and the interests of the owners, both current and future.
The role of the board is governance. That is how it is framed in the statute in the United states, the UK and the antipodes.
Directors have at their disposal both internal and external resources and are as demonstrated by case law, required to satisfy themselves by conducting any investigation into a matter they deem appropriate.

Eye pleasing stock prices satisfy management, and you can bet the CEO of Boeing's statement have careful consideration of share market impact. After all personal remuneration is at stake.
Weasel word statements carefully vetted by in-house legal and PR contain nothing admissible, no admission of fault, wrong doing or responsibility.
They are as lightweight as the paper on which they are written.

The directors of Boeing will be looking closely at any personal exposure.

Were one to look at the statute in Germany, directors are far more accountable for impact on among other things customers.
Olezcek & Rated De. Yes, perhaps I should have said ‘maximise shareholder value’ rather the shareholder profits. I quote from this site - which relates to the UK only.

https://www.franciswilksandjones.co....uciary_duties/

“Directors of any company in the UK are separate from the business owners, who are the Shareholders, and have a duty to manage the company (or companies), over which they are appointed, solely in the interest of Shareholders.”

I don’t think we are too much at odds with one another on this.



yellowtriumph is offline