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Do Corporations Really Have to Maximize Profits?
                            
The principle that corporations are legally obliged to maximize profits is not an actual law, but a precedent:
Ebay acquired a 28.4 per cent stake in Craigslist for $32m in 2004.
Craigslist called foul three years later when Ebay launched its own classifieds site, Kijiji.
Craigslist diluted Ebay’s stake to 24.85 per cent, stripping it of its board seat and souring relations between the two companies.
In his opinion, the judge wrote that Craigslist’s directors breached their fiduciary duty of loyalty by using their power as controlling stockholders to implement a transaction that was not entirely fair to Ebay, the minority stockholder.

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