Read the Wall Street Journal article, "Boeing Board Accused in Lawsuit of Lax Oversight During 737 MAX Crisis." This lawsuit is a great example of "shareholder activism." Boeing's shareholders took action when they felt the management failed to maximize their long-term value, and the board of directors failed to fulfill its fiduciary obligation to protect the interests of the shareholders. Respond to the following questions based on theories and concepts in Chapter 9. Q3-1. What are the role and duties of the broad of directors in corporate governance? Assuming Boeing shareholders' complaints are true in this lawsuit, in what ways did Boeing's board fail to fulfill its fiduciary duties to the shareholders? Q3-2. Assuming the shareholders' complaints are true, what are some likely reasons that Boeing's board failed to effectively fulfill its duties? Q3-3. We learned in Chapter 9 the importance of making sure the management acts in the best interests of shareholders. After reading the present case, do you think it is important that companies also make sure the board of directors acts in the best interests of shareholders? Why? If your answer is yes, what can companies do to guarantee that? Make sure your analysis is closely based on the course concepts and supported with factual evidence. Your analysis should be thorough.
Read the Wall Street Journal article, "Boeing Board Accused in Lawsuit of Lax Oversight During 737 MAX Crisis." This lawsuit is a great example of "shareholder activism." Boeing's shareholders took action when they felt the management failed to maximize their long-term value, and the board of directors failed to fulfill its fiduciary obligation to protect the interests of the shareholders. Respond to the following questions based on theories and concepts in Chapter 9. Q3-1. What are the role and duties of the broad of directors in corporate governance? Assuming Boeing shareholders' complaints are true in this lawsuit, in what ways did Boeing's board fail to fulfill its fiduciary duties to the shareholders? Q3-2. Assuming the shareholders' complaints are true, what are some likely reasons that Boeing's board failed to effectively fulfill its duties? Q3-3. We learned in Chapter 9 the importance of making sure the management acts in the best interests of shareholders. After reading the present case, do you think it is important that companies also make sure the board of directors acts in the best interests of shareholders? Why? If your answer is yes, what can companies do to guarantee that? Make sure your analysis is closely based on the course concepts and supported with factual evidence. Your analysis should be thorough.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:Read the Wall Street Journal article, "Boeing Board Accused in Lawsuit of Lax Oversight During 737 MAX Crisis."
This lawsuit is a great example of "shareholder activism." Boeing's shareholders took action when they felt the management failed to maximize their long-term value, and the board of directors failed to fulfill its
fiduciary obligation to protect the interests of the shareholders.
Respond to the following questions based on theories and concepts in Chapter 9.
Q3-1. What are the role and duties of the broad of directors in corporate governance? Assuming Boeing shareholders' complaints are true in this lawsuit, in what ways did Boeing's board fail to fulfill its fiduciary
duties to the shareholders?
Q3-2. Assuming the shareholders' complaints are true, what are some likely reasons that Boeing's board failed to effectively fulfill its duties?
Q3-3. We learned in Chapter 9 the importance of making sure the management acts in the best interests of shareholders. After reading the present case, do you think it is important that companies also make sure
the board of directors acts in the best interests of shareholders? Why? If your answer is yes, what can companies do to guarantee that?
Make sure your analysis is closely based on the course concepts and supported with factual evidence. Your analysis should be thorough.
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