It is known that there is generally a multiplicity of solutions for simple shearing flow of nematic liquid crystals, according to the usual continuum theory. With slight simplifications to this theory, we examine the stability and dissipation of solutions whose orientation lies in the plane of shear. Provided the shear rate is not too low, it is shown that there is just one solution which is feasible, stable, and least dissipative. This unique solution falls into one of two categories, depending on the boundary orientation. © 1979 Oxford University Press.