PPRuNe Forums - View Single Post - Boeing 737 again in the news
View Single Post
Old 20th Sep 2021, 18:25
  #41 (permalink)  
Dr Jay
 
Join Date: Feb 2016
Location: Boston, MA
Posts: 9
Likes: 0
Received 0 Likes on 0 Posts
beardy

Directors of publically traded companies do not make operational decisions, especially at a company as large as Boeing. For the most part, the Directors are unaware of most operational decisions. The role of the Director is to act independently with the best interests of the shareholders in mind to guide the Executives in making strategic decisions.. They determine if the CEO and other officers are the best options for the company. They also, through the Audit committee, provide additional checks and balances in the finances of the company. I suppose if operational issues like where to place a factory has strategic impact the board might weigh in, but otherwise, no....

These lawsuits against Boards are hard to win because Delaware law protects Directors pretty strongly. Unless this is willful malfeasance by the Board that can be proved, the law suit will probably not go anywhere. It has to be this way, otherwise no one would serve on the Board of a publically traded company.
Dr Jay is offline