They have a legal obligation to maximise shareholder value, but what that entails courts will generally leave up to the discretion of the company's executives. In fact, the very first paragraph says precisely that:
> At the same time, the case affirmed the business judgment rule
What is the business judgement rule?
> The business judgment rule is a case law-derived doctrine in corporations law that courts defer to the business judgment of corporate executives.
In other words, if the CEO of a company says that he did something because e.g. he believed it was better for the long-term health of the company, the court will generally take his word for it, barring evidence of deliberate malfeasance.
What one cannot do is as Ford did, which was to deliberately try and hurt other shareholders.
> At the same time, the case affirmed the business judgment rule
What is the business judgement rule?
> The business judgment rule is a case law-derived doctrine in corporations law that courts defer to the business judgment of corporate executives.
In other words, if the CEO of a company says that he did something because e.g. he believed it was better for the long-term health of the company, the court will generally take his word for it, barring evidence of deliberate malfeasance.
What one cannot do is as Ford did, which was to deliberately try and hurt other shareholders.