Download or read book Shareholder Primacy Revisited written by Jason Harris and published by . This book was released on 2009 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: The conventional view of corporate regulation is that corporations are to be managed for the benefit of their shareholders. The general law and statutory duties of directors and officers reflect this quot;shareholder primacy norm,quot; with duties formulated to prevent directors acting otherwise than in the interests of shareholders. However, the general law and statutory duties are not identical. The remedies and enforcement mechanisms differ considerably, which raises the question as to whether the public enforcement of statutory duties carries with it a public interest mandate that general law duties do not. This paper considers what role the public interest should have in enforcing statutory duties and whether such a role represents a challenge to the dominant shareholder primacy norm of corporate law. This issue is highly topical as recent decisions have suggested that the statutory duties of directors and officers are limited in their scope to protecting the interests of shareholders, even to the detriment of the public interest. We contest that viewpoint and argue that, at least in relation to statutory duties, directors and officers have obligations that extend beyond the narrow conception of the protection of shareholder wealth.
Download or read book The Shareholder Value Myth written by Lynn Stout and published by Berrett-Koehler Publishers. This book was released on 2012-05-07 with total page 146 pages. Available in PDF, EPUB and Kindle. Book excerpt: Distinguished legal scholar Stout proves that there is in fact absolutely no legal obligation for corporations to maximize shareholder value. She looks at new theories that not only better serve the needs of real human beings who invest, but of corporations and society as well.
Download or read book The Cambridge Handbook of Corporate Law Corporate Governance and Sustainability written by Beate Sjåfjell and published by Cambridge University Press. This book was released on 2019-12-12 with total page 758 pages. Available in PDF, EPUB and Kindle. Book excerpt: The emerging field of corporate law, corporate governance and sustainability is one of the most dynamic and significant areas of law and policy in light of the convergence of environmental, social and economic crises that we face as a global society. Understanding the impact of the corporation on society and realizing its potential for contributing to sustainability is vital for the future of humanity. This Handbook comprehensively assesses the state-of-the-art in this field through in-depth discussion of sustainability-related problems, numerous case studies on regulatory responses implemented by jurisdictions around the world, and analyses of predominant strategies and potential drivers of change. This Handbook will be an essential reference for scholars, students, practitioners, policymakers, and general readers interested in how corporate law and governance have exacerbated global society's most pressing challenges, and how reforms to these fields can help us resolve those challenges and achieve sustainability.
Download or read book A One Legged Stool How Shareholder Primacy Has Broken Business And What We Can Do About It written by Ed Chambliss and published by Best Friend Brands, LLC. This book was released on 2022-03-14 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt: Have you ever wondered if business needs to be so...unbalanced? Is putting shareholders above everyone else the only way for private enterprise to be successful? Is that "just the way it is?" The short answer is "no." Before "shareholder primacy" took hold in the 1970s, investors weren't more important than other stakeholders. Companies balanced the interests of all the legs of the corporate stool - customers, employees, communities, and shareholders - and everyone's life got better. So, what happened? How did we get to today, where "maximizing shareholder value" is seen as the panacea for all the world's ills? And, more importantly, what's the path forward that allows business to profit by applying its significant resources to solving society's problems, rather than making them worse? We all rely on the stool of business to elevate our lives. Let's fix it before it collapses.
Download or read book The Cambridge Handbook of Stakeholder Theory written by Jeffrey S. Harrison and published by Cambridge University Press. This book was released on 2019-05-09 with total page 301 pages. Available in PDF, EPUB and Kindle. Book excerpt: A comprehensive foundation for stakeholder theory, written by many of the most respected and highly cited experts in the field.
Download or read book Encyclopedia of Corporate Social Responsibility written by Samuel O. Idowu and published by Springer. This book was released on 2013-01-27 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The role of Corporate Social Responsibility in the business world has developed from a fig leaf marketing front into an important aspect of corporate behavior over the past several years. Sustainable strategies are valued, desired and deployed more and more by relevant players in many industries all over the world. Both research and corporate practice therefore see CSR as a guiding principle for business success. The “Encyclopedia of Corporate Social Responsibility” has been conceived to assist researchers and practitioners to align business and societal objectives. All actors in the field will find reliable and up to date definitions and explanations of the key terms of CSR in this authoritative and comprehensive reference work. Leading experts from the global CSR community have contributed to make the “Encyclopedia of Corporate Social Responsibility” the definitive resource for this field of research and practice.
Download or read book The Shareholder Value Myth written by Lynn Stout and published by ReadHowYouWant. This book was released on 2012-05 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt: Proves that shareholder primacy has no basis in law or economics and does not deliver better bottom - line results. Suggests better ways to think about shareholders and their relationship to corporations Written by one of America's most distinguished legal scholars, Executives, investors, and the business press routinely chant the mantra that co...
Download or read book Opting Out of Shareholder Primacy written by David G. Yosifon and published by . This book was released on 2019 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: The central command of corporate governance law is that directors must serve the shareholder interest. Directors may not sacrifice shareholder value in favor of other stakeholders or values. In this Article, I examine whether this rule is mandatory, or merely a default rule which can be altered through private ordering. I argue that Delaware's corporate law, the most important corporate law in the United States, should be understood to have long-permitted deviation from shareholder primacy by charter specification. This conclusion, however, is at least complicated by the recent legislative creation of the Public Benefit Corporation (PBC). The PBC is a new form of business organization that explicitly charges directors with balancing the interests of shareholders and non-shareholders in corporate operations. The PBC innovation may lead judges to conclude that if corporate promoters want to deviate from shareholder primacy, they must do so by using the Public Benefit Corporation. The organizational and governance requirements of the PBC are highly particular, and most of its important features are mandatory. Thus, the Public Benefit Corporation may inadvertently have narrowed flexibility in the creation of corporations that alter the shareholder primacy norm, rather than expanded it, as the PBC's proponents and many commentators have presumed.A more desirable interpretation, however, is that private-ordering of corporate beneficiary is still permitted under the Delaware General Corporation Law, and that the PBC is merely one alternative structure - a non-exclusive “menu option” - which promoters seeking alternatives to shareholder wealth maximization may find convenient to use. I urge judges to adopt this second interpretation, and I urge Delaware lawmakers to clarify their intentions to avoid jurists adopting the view that the PBC is the exclusive path to multi-stakeholder governance.
Download or read book Shareholder Primacy as an Untenable Corporate Norm written by Yong-Shik Lee and published by . This book was released on 2023-11-15 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Shareholder Primacy as an Untenable Corporate Norm argues that corporate interests and broader social interests, such as benefits to consumers and employees, are not mutually exclusive and can be reconciled by allowing corporate managers and majority shareholders to define corporate interests more broadly.
Download or read book New Thinking on Shareholder Primacy written by Lynn A. Stout and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: By the beginning of the twenty-first century, many observers had come to believe that U.S. corporate law should, and does, embrace a “shareholder primacy” rule that requires corporate directors to maximize shareholder wealth. This Essay argues that such a view is mistaken. As a positive matter, U.S. corporate law and practice does not require directors to maximize shareholder wealth but instead grants them a wide range of discretion, constrained only at the margin by market forces, to sacrifice shareholder wealth in order to benefit other constituencies. Although recent “reforms” designed to promote greater shareholder power have begun to limit this discretion, U.S. corporate governance remains director-centric. As a normative matter, several lines of theory have emerged in modern corporate scholarship that independently suggest why director governance of public firms is desirable from shareholders' own perspective. The Essay reviews five of these lines of theory and explores why each gives us reason to believe that shareholder primacy rules in public companies in fact disadvantage shareholders. It concludes that shareholder primacy thinking in its conventional form is on the brink of intellectual collapse, and will be replaced by more sophisticated and nuanced theories of corporate structure and purpose.
Download or read book Beyond Shareholder Value written by P. M. Vasudev and published by Edward Elgar Publishing. This book was released on 2021-05-28 with total page 432 pages. Available in PDF, EPUB and Kindle. Book excerpt: This timely and engaging book examines how maximizing shareholder value has played a dominant role in corporate governance over recent decades, and analyzes the resulting effect on share prices in the stock markets. Alongside the rise in corporate power and deepening economic inequality, the author investigates corporate law reform as a corrective remedy.
Download or read book The Ends of Shareholder Primacy written by Nick Noonan and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Shareholder Value Myth written by Lynn Stout and published by . This book was released on 2012-05-07 with total page 276 pages. Available in PDF, EPUB and Kindle. Book excerpt: Proves that shareholder primacy has no basis in law or economics and does not deliver better bottom - line results. Suggests better ways to think about shareholders and their relationship to corporations Written by one of America's most distinguished legal scholars, Executives, investors, and the business press routinely chant the mantra that corporations are required to ''maximize shareholder value.'' The results have been disastrous. ''Shareholder primacy'' thinking causes corporate managers to focus myopically on short - term earnings reports at the expense of long - term performance; discourages investment and innovation; harms employees, customers, and communities; and causes companies to indulge in reckless, sociopathic, and socially irresponsible behaviors. It's the kind of thinking that led directly to the recent worldwide economic collapse. Jack Welch, once a shareholder primacy true believer, has famously called it ''the dumbest idea in the world.'' Lynn Stout proves that there is in fact no legal obligation for corporations to maximize shareholder value - scholars, lawyers, and corporate officers just assumed there was. Nor, she demonstrates, is maximizing shareholder value the optimal economic model - that's just another unproven assumption, one that is conceptually muddled and, Stout shows, unsupported by the actual evidence on what drives good corporate performance. As if this wasn't enough, Stout also shows how shareholder primacy actually hurts individual investors by obscuring their real, diverse, human interests in the name of serving a hypothetical, homogeneous, abstract, and conscienceless shareholder. Stout looks at new theories that better serve the needs not only of actual human beings who invest but of corporations and society as well. ''Calm, careful, plainspoken, and relentless argumentation that peels away the distracting layers of abstract mumbo jumbo to expose the lunacy of the underlying theory for all to see. Lynn Stout does the world a great favor in exposing shareholder value theory for what it is: flawed and damaging.'' - Roger Martin, Dean, Rotman School of Management, University of Toronto, and author of Fixing the Game.
Download or read book Shareholder Primacy Theory Vs Stakeholder Theory written by Jason Hung and published by . This book was released on 2020 with total page 5 pages. Available in PDF, EPUB and Kindle. Book excerpt: This article presents the practice of shareholder primacy theory and stakeholder theory, with the support of relevant laws and examples in American and British contexts. Here the article argues that managers following shareholder primacy theory should always act in a manner that they reasonably believe they are serving the best interests of the corporation. Such a belief does not exclude directors and managers from considering the interests of non-shareholders as whether “the best interests of the corporation” encompass non-shareholders' benefits is arguable. In addition, this article discusses corporate social responsibility (CSR) and argues how CSR is related to the practice of stakeholder theory and an improvement of both public and corporate interests.
Download or read book Myth of Shareholder Primacy in English Law written by Jonathan Mukwiri and published by . This book was released on 2014 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: By virtue of section 172 of the Companies Act 2006, the concept of Enlightened Shareholder Value, which is an extension of Shareholder Primacy norm, is now enshrined into English law as the basis of corporate governance. Prior to the Companies Act 2006, much was written about shareholder primacy, which assumed it to be the basis of corporate governance in English law. But what has rarely been discussed is the validity of that assumption. Was shareholder primacy a legal norm in English law prior to the Companies Act 2006? Did the case law that are purported to have supported shareholder primacy really support it? In testing the validity of the shareholder primacy assumption, this article examines its purported legal sources rather than its merits. The ultimate shareholder primacy norm is that directors are agents of shareholders, and that directors are under fundamental obligation to run the company in the interest of the shareholders. This article finds that directors owed no such legal obligation to shareholders, that the confusion was based on the historical application of partnership principles to company law, and that a contextual reading of case law reveals that the theory would have been at odds with the elementary tenet of corporate legal personality. This article also finds that although shareholder primacy norm has since been enshrined in the Companies Act 2006, albeit as Enlightened Shareholder Value, it remains at odds with the legal personality tenet and provides a right without corresponding legal remedy.
Download or read book Shareholder Primacy Vs Stakeholder Theory written by David Rönnegard and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Shareholder Primacy Corporate Governance and Financial Market Growth written by Navajyoti Samanta and published by . This book was released on 2019 with total page 309 pages. Available in PDF, EPUB and Kindle. Book excerpt:
