Its very difficult for shareholders to exert power over the board these days. Shareholder threats are practically a paper tiger nowadays due to many factors and what Delaware courts and legislature have done to corporate law; any fear that boards of directors have of them is largely out of formality and what was capable in the past.
Companies can get away with all sort of "strange whims" (using legal language) if they can articulate even a threadbare, shitty, pathetic reason for believing it will be profitable. That it was "just a mistake". They were trying to court the LGBT market after all, how could they know it would backfire?
Now all we need is for shareholders to get pissy with the board for allowing their investments to be hurt.
Its very difficult for shareholders to exert power over the board these days. Shareholder threats are practically a paper tiger nowadays due to many factors and what Delaware courts and legislature have done to corporate law; any fear that boards of directors have of them is largely out of formality and what was capable in the past.
Companies can get away with all sort of "strange whims" (using legal language) if they can articulate even a threadbare, shitty, pathetic reason for believing it will be profitable. That it was "just a mistake". They were trying to court the LGBT market after all, how could they know it would backfire?
That’s disappointing.