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Is Red Hat in financial trouble?

Is Red Hat in financial trouble?

Posted Mar 1, 2011 3:42 UTC (Tue) by tialaramex (subscriber, #21167)
In reply to: Is Red Hat in financial trouble? by daglwn
Parent article: Red Hat's "obfuscated" kernel source

Strictly speaking they're responsible for everything they sign up for. If a company says it's going to make boats and profit from that then yes, you can sue because the board made a decision that needlessly trims profits ("let's not charge Old Bill full price for these materials, he's a nice fellow") but you can also sue them for making a decision that interferes with the boat-building goal ("I don't even like boats, let's sell icecream")

The existence of the stock market does encourage some people to buy and sell stocks without knowing anything about the company (perhaps not even the name, the ticker symbol is enough to buy and sell) but the lack of interest by investors in non-financial goals is a failing of the investors and not of the businesses. In my experience the largest fraction of companies have a clear purpose stated in their paperwork, and many have a purpose that a layman would instantly understand like "sell people coffee" or "build skyscrapers" and thus investors do have the information to make ethical decisions if they choose to do so.

Red Hat, I think, says it makes Free Software operating systems (I won't swear what terms they use exactly). It cannot become a used furniture store without going through a process to change the paperwork or risking a lawsuit by investors. Until it does that, you can expect that producing Free Software will be a goal balanced with making money to keep the financial people happy. From time to time that will mean we don't get what we want, and we don't have to be happy about that (I think this change was stupid) but we shouldn't think its the end of the world.


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Is Red Hat in financial trouble?

Posted Mar 1, 2011 16:12 UTC (Tue) by mpr22 (subscriber, #60784) [Link]

My understanding is that in England, the purpose of a company limited by shares is habitually stated in its paperwork to be "carrying out business". This avoids paperwork-wrangling when you decide that you'd like to carry out a kind of business you hadn't initially considered.


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