Responding To Conflicting Shareholder Directives

Law360, New York (May 12, 2016, 5:16 PM EDT) -- Shareholder activism, which seeks short-term gain for corporate shareholders, and the response to it by some long-term investors, which seek long-term growth in corporate profitability, are creating inconsistent shareholder directives to directors of public companies. At the same time, under Delaware corporate law the selection of a time frame for the achievement of corporate goals is a decision of the directors that may not be delegated to the shareholders. This post addresses how directors may seek to resolve these conflicting considerations....

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