MartinP
Veteran
Stock sales promoters often want to make believe that that is true, but it is about as wrong as possible. Even in the US, obligations to the tax authorities, welfare/public health system, pension funds and creditors (and customers with outstanding warranties or service contracts legally are creditors) are prior to the shareholders - and in the EU, the staff squeezes in between as well. Shareholders have pretty much the lowest priority in a companies obligations, as any shareholder in a bankrupt company will discover - they may even be obliged to feed cash into the company or, on refusal, accept the devaluation of their shares.
What is true is that the board represents the shareholders, and has to act solely in their interest - but the board is merely supervising, not managing the company.
I didn't think I had to note that companies must follow the law concerning taxes, creditors etc. So far as I recall, the management don't get any independent choice in the matter - when the board says we are selling all assets to "X" and closing the rest (within the law) then the management do it or get fired. They make no company policy. Hence, companies might not act in a way to maintain the existence of the business or goodwill, which is the point I was replying to.
In the UK pensions and employees are not a very high priority (generally no workers councils, no representative on the board, and low unionisation), possibly this is one reason for the success of the German industrial model. In more than one instance the pensions-funds were emptied to keep businesses afloat temporarily, while the board made other plans. It may or may not be 'legal' but few large-company directors go to prison or stay there very long.
But, we were taking about a Nikon marketing competition . . . If the priority was purely to find the best image then homemade pinhole cameras would also be allowed (though unlikely to win) so one can say it is their competition, their rules.