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> What happens when a shareholder breaks the law?, Conflict of Interest much?
ShadowDragon8685
post Jan 22 2007, 09:49 PM
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A corporation is, first and foremost, beholden to it's shareholders. They're literally the guys looking at the bottom line.


So, what happens when a company Shareholder is the one who breaks the law, and the company they hold shares in is Lone Star (or whatever company is contracted to provide security?)

How are they going to arrest and turn over evidence that will put one of their Shareholders - very specifically the guys to whom they are beholden to - in jail, to the courts? They can't! If they do that, they'll lose their jobs, especially when other Shareholders realize that company loyalty means nothing, and they pull all their money out.


So, does holding shares in XYZ Securty Corp basically immunize you from the Law provided by XYZ Sec Corp? Does it have to be a specific amount or percent of shares before they're willing to screw the client in favor of the shareholder? Or can every Joe, Dick and Jane Runner immunize themselves by buying a share of Lone Star and Knight-Errant?
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