PROFIT MAXIMIZATION AND/OR ANIMUS DONANDI: DODGE V. FORD REVISITED
PROFIT MAXIMIZATION AND/OR ANIMUS DONANDI: DODGE V. FORD REVISITED

Author(s): Codrin Macovei
Subject(s): Law, Constitution, Jurisprudence
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: corporate law and practice; donation; profit maximization;
Summary/Abstract: The activity of companies presents nowadays complex problems generated by the specificity of modern economic activity, the changes in mentality, the way in which technology influences the way in which legal acts are concluded, in which new products and services are created or obligations are executed. More and more, the role, conscience and social responsibility of societies is being talked about. In the well-known Case Dodge v. Ford Motor Co. - 204 Mich. 459, 170 N.W. 668 (1919) - the court wanted to make clear why a corporation exists: `There should be no confusion... A business corporation is organized and carried on primarily for the profit of the stockholders. The powers of the directors are to be employed for that end. The discretion of the directors is to be exercised in the choice of means to attain that end and does not extend to... other purposes`. Our article wishes to ascertain the present relevance of this particular Case to corporate law and practice and to the question whether companies can have `animus donandi`.

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