Mark McHugh

Posts Tagged ‘GE Stock’

Can You say ‘Fiduciary’?

In Open Thread, stocks finance, Uncategorized on Sunday, March 8, 2009 at 3:59 pm

immeltcapture

It seems that corporate America is in need of a vocabulary lesson:

From West’s Encyclopedia of American Law via Answers.com

Fiduciary (fidōō′shē-erē) n.

An individual in whom another has placed the utmost trust and confidence to manage and protect property or money. The relationship wherein one person has an obligation to act for another’s benefit……

…..A fiduciary relationship extends to every possible case in which one side places confidence in the other and such confidence is accepted; this causes dependence by the one individual and influence by the other……

I can’t link to an SEC or Finra or NYSE web page that clearly defines the CEO’s fiduciary obligations to shareholders (because I can’t find them, or they don’t exist), but I’m pretty sure that when you say your dividend is good to go, then cut it a month later you’ve breached the trust the shareholders have placed in you.

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