Tuesday, October 12, 2004

hypothetical.



company S decides to run a documentary that portrays a challenger in an unnamed presidential election in an unnamed global superpower in a negative light.

advertisers are upset and begin pulling out.

company S then decides to run program without advertisements, thus losing money in order to air the program.

shareholders start balking.

meanwhile, the stock price of company S starts doing this:

company S disregards shareholders and forges ahead with plan to air program without advertisements.

question: is this a breach of fiduciary duty?

discuss.

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