“Apple has nearly $100 billion in cash just sitting on its balance sheet, earning nothing more than a market rate of return,” Chris Ciaccia reports for CNBC. “As the cash hoard grows ever larger, shareholders have grown increasingly more vocal about getting hold of it.”
Ciaccia writes, “This poses the question: Do Apple shareholders have a legal right to the cash, and could they sue Apple to get it?”
“Even though there’s growing pressure for Apple to start paying a dividend again, the board does not have an obligation to pay, despite investors’ cries for something to be done,” Ciaccia reports. “Corporations are not charities, say lawyers, and are designed to earn a profit, which they can’t do effectively if shareholders are demanding financial capital back.”
Much more in the full article here.