http://overlawyered.com/2006/09/new-point-of-law-featured-discussion/?utm_source=rss&utm_medium=rss&utm_campaign=new-point-of-law-featured-discussion Chronicling the high cost of our legal system Sun, 27 May 2012 05:00:03 +0000 hourly 1 http://wordpress.org/?v=3.3.2 http://overlawyered.com/2006/09/new-point-of-law-featured-discussion/comment-page-1/#comment-4024 Nathan S. Lord Mon, 11 Sep 2006 23:31:36 +0000 http://overlawyered.com/wpblog/?p=3933#comment-4024 Business judgment is what directors are supposed to use to fulfill their fiduciary obligation to shareholders. The fiduciary obligation is paramount. When business judgment produces wealth not for the shareholders but for directors and senior managers, the fiduciary obligation has been breached. The law needs to find a workable method of wreaking financial and additional ruin on those who breach fiduciary obligations. The punitive consequences should vastly exceed the money involved in the fiduciary failure. Business judgment is what directors are supposed to use to fulfill their fiduciary obligation to shareholders. The fiduciary obligation is paramount. When business judgment produces wealth not for the shareholders but for directors and senior managers, the fiduciary obligation has been breached.
The law needs to find a workable method of wreaking financial and additional ruin on those who breach fiduciary obligations. The punitive consequences should vastly exceed the money involved in the fiduciary failure.

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