Comments on: The Rich and the Rest of Us http://weblog.sinteur.com/2008/06/the-rich-and-the-rest-of-us/ si hoc legere scis nimium eruditionis habes Fri, 09 Jan 2009 03:17:22 +0000 http://wordpress.org/?v=2.7-RC1 hourly 1 By: Roland Hesz http://weblog.sinteur.com/2008/06/the-rich-and-the-rest-of-us/comment-page-1/#comment-26017 Roland Hesz Fri, 20 Jun 2008 09:55:42 +0000 http://weblog.sinteur.com/2008/06/the-rich-and-the-rest-of-us/#comment-26017 First thing would be to change the law that forces the corporations to disregard everything except the profit. Funny, no? The actual law makes the corporation guilty if they care about anything else but profit. <blockquote cite="http://en.wikipedia.org/wiki/Dodge_v._Ford_Motor_Company">The Court held that a business corporation is organized primarily for the profit of the stockholders, as opposed to the community or its employees. The discretion of the directors is to be exercised in the choice of means to attain that end, and does not extend to the reduction of profits or the nondistribution of profits among stockholders in order to benefit the public, making the profits of the stockholders incidental thereto.</blockquote> <a href="http://en.wikipedia.org/wiki/Dodge_v._Ford_Motor_Company" rel="nofollow">Dodge v. Ford</a> Because this company was in business for profit, Ford could not turn it into a charity. This was compared to a spoilation of the company's assets. The court therefore upheld the order of the trial court requiring that directors declare an extra dividend of $19 million. First thing would be to change the law that forces the corporations to disregard everything except the profit. Funny, no? The actual law makes the corporation guilty if they care about anything else but profit.

The Court held that a business corporation is organized primarily for the profit of the stockholders, as opposed to the community or its employees. The discretion of the directors is to be exercised in the choice of means to attain that end, and does not extend to the reduction of profits or the nondistribution of profits among stockholders in order to benefit the public, making the profits of the stockholders incidental thereto.

Dodge v. Ford

Because this company was in business for profit, Ford could not turn it into a charity. This was compared to a spoilation of the company’s assets. The court therefore upheld the order of the trial court requiring that directors declare an extra dividend of $19 million.

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