The Church and the Wall Street Rule

wall streetEven though the federal income tax is my main professional interest, I don’t teach exclusively tax classes; every year, I also teach a Business Organizations class.[fn1]

In many business entities (especially publicly-traded corporations, on which I’ll focus here), management of the firm is separated from ownership. The shareholders are the equity owners of a corporation, but the board of directors manages it and makes the day-to-day decisions. And the goals of the board members may differ from the goals of the shareholders.  [Read more…]