There Is No Effective Fiduciary Duty to Maximize Profits
the board does not have to cater to the wishes of a subset of the shareholders, or even a majority of the shareholders. Instead, directors are supposed to use their own independent judgment to determine what is best for the corporation.
.. But when have you seen a corporate board really stick up for the little guy? By contrast, I tend to think of corporate directors as cronies chosen by the CEO to maximize his already excessive compensation package; to overlook questionable and illegal practices that lead to, say, a global financial crisis; and, increasingly, to acquiesce in his contributions of the corporation’s money to pet charities and political causes.