[gregsq]

Speaking from the UK perspective, the false idea that maximisation of profit is inferred in any way by corporation law is sometimes more easily seen when examining the case of 'Private' companies. These are companies still limited by shares, or stocks, but where the director, the single shareholder, and the employee are all one and the same person.

It can be a valuable example because it is easy to show how a director making decisions that maximise benefits to the shareholder are not necessarily in the best interests of the company entity, and in fact are viewed with suspicion by regulating bodies.

The best interests of the company include many other considerations besides shareholder return. One of those has to be long term viability for a long lived corporate entity. Eroding goodwill and reputational or brand damage go directly to the heart of the concept of director responsibility.