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Full-Text Articles in Law
Agency Theory As Prophecy: How Boards, Analysts, And Fund Managers Perform Their Roles, Jiwook Jung, Frank Dobbin
Agency Theory As Prophecy: How Boards, Analysts, And Fund Managers Perform Their Roles, Jiwook Jung, Frank Dobbin
Seattle University Law Review
In 1976, Michael Jensen and William Meckling published a paper reintroducing agency theory that explained how the modern corporation is structured to serve dispersed shareholders. They purported to describe the world as it exists but, in fact, they described a utopia, and their piece was read as a blueprint for that utopia. We take a page from the sociology of knowledge to argue that, in the modern world, economic theories function as prescriptions for behavior as much as they function as descriptions. Economists and management theorists often act as prophets rather than scientists, describing the world not as it is, …
The Treatment Of Nominee Corporations For Income Tax Purposes, Norton L. Steuben
The Treatment Of Nominee Corporations For Income Tax Purposes, Norton L. Steuben
Seattle University Law Review
This Article traces the development of the nonentity and agency approaches to the treatment of nominee corporations. The nonentity approach had a short lifespan and is of little use today. The agency approach, in contrast, experienced a period of development that resulted in a complex six-factor test that was employed in at least three circuits. When a conflict in the application of the six-factor test developed, the Supreme Court in Commissioner v. Bollinger enunciated a different approach and established a new, more workable standard. This Article explores the limitations of that standard as well as its practical application for planners.
Does The Agency Die When The Principal Becomes Mentally Incapacitated?, W. Alfred Mukatis
Does The Agency Die When The Principal Becomes Mentally Incapacitated?, W. Alfred Mukatis
Seattle University Law Review
This Article explores the status of an agency when a competent principal enters into an agency relationship and thereafter becomes mentally incapacitated. On the one hand, does the status of the agency depend on factors relating to the principal such as type, length, or permanence of the incapacity? For instance, is the status of the agency the same when a principal lapses into a coma as it is when a conscious principal is incapacitated because of a mental disease such as schizophrenia? If in a coma, how does the length of the coma affect the status of the agency? Is …