Shareholder rights

Corporations act through their officers and directors. When a corporation has acted illegally or immorally one or more individuals is responsible. To often the stockholders suffer but the officers or directors who directed the conduct get a free pass.

It does not have to be that way. Ask New York federal Judge Jed S. Rakoff who is presiding over the settlement between the S.E.C. and Bank of America. Judge Rakoff is requiring disclosure of the identity of the individuals who failed to disclose huge bonuses that Merrill Lynch was paying on the verge of merging with BOA. Corporations act through individuals. If it was wrong for Merrill Lynch to pay the bonuses the individuals responsible for those payments should be held accountable.

For more information about Judge Rakoff and this case see https://www.nytimes.com/2009/08/24/business/24judge.html