Law Commons^™

Texas’S Attempt To Compete With Delaware, Robert A. Ragazzo

Fordham Journal of Corporate & Financial Law

Delaware derives substantial economic benefits from attracting incorporation business. Other states have sought to receive a share of these economic benefits. Texas is among them. Part I of this article will consider Texas’s attempt to copy Delaware’s enabling philosophy. It will conclude that, although the Texas courts have not always shared Delaware’s enabling view, the Texas legislature has historically done its best to place Texas on a par with Delaware in terms of its enabling philosophy of corporate governance. In recent times, the Texas legislature has actually outdone the Delaware legislature in creating a pro-managerial corporate environment. Part II of …

Under Pressure: Delaware, Corporate America, And Certified Questions, Derek S. Hubbard

Law Student Publications

With an advanced corporate code and a highly respected Court of Chancery, Delaware has long been America’s home for big business. But its status may be in jeopardy. Within the past year, the Court of Chancery has shattered two market practices and reminded stakeholders of the uncertain nature of fiduciary duties. Corporations have responded. Termed “DExit,” corporations are leaving Delaware for competing jurisdictions, namely Texas and Nevada. As corporations leave Delaware, so do their tax dollars. Delaware’s fiscal stability is directly tied to the continued presence of corporate charters in Delaware. Delaware residents enjoy a low tax burden, with the …

The Boundaries Of Corporate Politicking, Ashlee A. Paxton-Turner

Law Faculty Publications

As corporations become red brands and blue brands (whether purposely or accidentally), they are participating in the American political landscape in ways distinct from lobbying and political spending. Specifically, corporations are increasingly making statements or launching ad campaigns that appear to support one side (or the other) of a political or social debate. This Article refers to that activity as “corporate politicking.” Unlike political spending or lobbying, corporate politicking lacks a legal definition and is far less regulated—whether internally or externally.

This Article’s central contribution is an administrable framework to demarcate corporate politicking from other corporate activities and decisions. It …

Flows, Financing Decisions, And Institutional Ownership Of The U.S. Equity Market, Alon Brav, Dorothy S. Lund, Lin Zhao

Faculty Scholarship

This Article analyzes the relationship between flows to institutional investment managers, corporate financing decisions, and institutional ownership of U.S. public equity. In so doing, it provides new evidence about the drivers of institutional investor growth in equity ownership over the past two decades. Contrary to conventional narrative, we find that equity capital flows into the “Big Three” investment managers have slowed in recent years, with substantial differences between each institution. We also present a framework to understand how fund characteristics and corporate actions such as stock buybacks and equity issuances combine to shape the evolution of institutional ownership, including that …

"Activist" Versus "Passive" Investors: A Closer Look At Proxy Contests And The Contemporary Balance Of Advantage, John C. Coffee Jr.

Faculty Scholarship

The era of the hostile takeover has clearly given way to the era of the proxy contest led by an activist hedge fund. Today, a record number of such contests are underway, and they have changed the board composition at many U.S. companies and caused a record number of CEO resignations. But there is a mystery here: when activist funds negotiate for changes with target managements, they often obtain meaningful changes in the board of directors and corporate policies. However, when activists attempt a proxy contest, they have generally been unsuccessful, winning only a small number of seats in a …

The Spac Clock, Andrew A. Schwartz

Publications

Special purpose acquisition companies (SPACs) are public companies organized to die. Unlike ordinary corporations, which enjoy perpetual existence by default, SPACs are legally required to consummate a merger within a fixed period--usually two years, never more than three--or else liquidate and return investors' cash.

This Article takes that clock seriously and argues that limited life is foundational to the SPAC form: it disciplines sponsors by preventing indefinite warehousing of capital, reassures investors by guaranteeing liquidity, and makes the form marketable in the first place. A perpetual SPAC would be good for nobody.

At the same time, the SPAC clock distorts …

“Spinning Wheel Got To Go Round”: Developments In The Law Affecting Electronic Payments And Financial Services, Sarah Jane Hughes, Tom Kierner, Stephen T. Middlebrook

Articles by Maurer Faculty

The past year reminds us of the rock lyrics from “Spinning Wheel” on Blood, Sweat & Tears’s 1968 self-titled record—“What goes up, must come down/Spinning Wheel got to go round”—because there have been many changes in strategy and reversal of policy since President Trump’s inauguration in January 2025. Our Survey documents these changes and reversals as they affect electronic payments and financial services. This year’s Survey also reports on warnings from state and federal regulators aimed at bank and non-bank providers of consumer financial services. Part II examines an FTC enforcement action related to the unfair and deceptive marketing of …

Corporations’ First Amendment Rights And Algorithmic Cocoons, Sol Murgui Orsucci

Fordham Journal of Corporate & Financial Law

This Note examines how corporate First Amendment doctrine applies to algorithmic systems that curate commercial information and public discourse across online platforms. Courts have increasingly treated ranking, recommendation, and moderation practices as exercises of protected editorial judgment. At the same time, the Court has justified protection for corporate speech in part by reference to listener-centered interests in access to information and competitive comparison. This Note argues that the interaction between these doctrinal strands and contemporary algorithmic intermediation reveals a structural tension. Data-driven optimization can generate individualized informational environments—what this Note terms “algorithmic cocoons”—in which users encounter content, offers, and prices …

Sustainability Assurance, Andrew F. Tuch, Luca Enriques, Alessandro Romano

Scholarship@WashULaw

A robust literature examines sustainability disclosures by public corporations, but legal scholarship has largely overlooked the role of third-party assurance—or verification—of such disclosures. This is a notable omission given the extensive literature on the auditing of financial statements, a related form of assurance.

This article responds by examining the role of assurance in sustainability reporting. In keeping with the theme of this symposium volume, it draws on US and EU law. Our discussion begins in Part I with sustainability disclosures, focusing on the requirements and practices of public companies. In Part II, we introduce sustainability assurance as well as assurance …

Oppression On The Blockchain, Erwin J. Kwok, Moin A. Yahya

Emory Business Law Review

When Ethereum (ETH) shifted from a Proof of Work (PoW) protocol to a Proof of Stake (PoS) protocol, not all users were enthused. We use Ethereum’s shift from PoW to PoS as a case study for the broader question of whether developers of a blockchain owe its members certain fiduciary or fiduciary-like duties. We argue that if done properly, in accordance to the rules governing the blockchain, then developers do not necessarily owe fiduciary responsibility to other members of the chain, but they nonetheless may owe fiduciary-like responsibilities to users inadvertently and negatively impacted. We argue these users may be …

Justice On Trial: Integrating Ethics In Law School Advocacy Courses, Veronica J. Finkelstein

Emory Business Law Review

The rule of law depends not only on legal doctrine and institutional design, but on the daily ethical choices of the lawyers who operate within the adversarial system. Trial lawyers, in particular, wield extraordinary power courtroom outcomes, yet law schools too often train future advocates to perform persuasive techniques without meaningful engagement with the ethical obligations that constrain those techniques and the lawyers who wield them. This article argues that the persistent separation between trial advocacy education and legal ethics instruction leaves law students ill-prepared for the moral complexities of litigation and threatens public confidence in the justice system.

Tracing …

Summoning Firms: Promoting Democratic Stability And Economic Prosperity In Times Of Constitutional Crisis, Jon D. Michaels

Emory Business Law Review

No abstract provided.

Illiberal Democracy, Merger Regulation, And Corporate Culture, Brian Jm Quinn

Emory Business Law Review

This Essay examines how the second Trump Administration has weaponized merger regulation and regulatory approval processes as tools of corporate capture in service of democratic backsliding toward an illiberal regime. Drawing on theoretical frameworks of competitive authoritarianism and illiberal democracy, this paper demonstrates how discretionary regulatory authority combined with weakened enforcement mechanisms creates opportunities for grand corruption that systematically undermines liberal democratic institutions.

This Essay accomplishes three primary objectives. First, it establishes the essential characteristics of illiberal regimes which maintain the facade of democratic institutions while systematically skewing the political playing field through selective enforcement and regulatory capture. Second, it …

No 'Dexit': Delaware's New Statutory Corporate Law Loosens The Restrictions On Controlling Shareholder Transactions In Response To Corporate Outlash Following Tornetta V. Musk, Reid A. Manabat

Emory Business Law Review

The recent Tornetta v. Musk decisions caused upheaval in the Delaware corporate community. Throughout 2024, shareholder executives have left or threatened to leave Delaware to incorporate elsewhere in a move termed “DExit.” The threat did not go unnoticed by Delawareans and lawmakers who contemplated a two-billion-dollar loss to the state’s tax revenue. Despite the courts’ willingness to require heightened scrutiny for conflicted-controller transactions, in recent years lawmakers have lowered the bar. I argue that Delaware’s new statutory corporate law does not adequately protect minority shareholders from conflicted controllers. First, the new statutory cleansing mechanisms ignore the unique dangers of conflicted-controller …

A Corporate Accountability “Turn” In International Climate Litigation, Jacqueline Peel

Lewis & Clark Law Review

Corporations are among the most significant emitters of anthropogenic greenhouse gases, which are responsible for the existential threat of climate change. Yet accountability for corporate emitting activities has been difficult to secure, particularly where companies operate across nation-state borders or have global value chains. This Essay looks at recent developments in international law, found in a series of climate-related advisory opinions issued by international courts and tribunals, which may signal greater corporate accountability for climate harms. It argues that the recent advisory opinions of the International Tribunal for the Law of the Sea, the Inter-American Court of Human Rights, and …

Quantum Ai And The Future Of Corporate Law, Michael R. Siebecker

Cardozo Law Review

As quantum computing and AI surge toward mainstream adoption, how corporate directors satisfy their duties of care and oversight requires some fiduciary recalibration. The current fiduciary framework that allows directors to escape liability absent “gross negligence” or “utter failure” in oversight may no longer be defensible in a world where advanced analytics offer unprecedented capacity to model, monitor, and foresee significant corporate risks. Behavioral economics makes clear that humans (including corporate managers) remain vulnerable to a variety of biases and heuristics shortcuts in decision making. Technological evolution provides the means to correct such cognitive distortions if boards take an active …

Finite Ventures, Andrew A. Schwartz

Publications

The law endows corporations and other business organizations with the awesome power of perpetual life—unless the charter expressly provides for a certain duration, such as ten years. But does anyone ever actually choose limited life? Why would they?

This article reveals that limited-life business entities—finite ventures—play a significant and underappreciated role in modern commerce. Private equity and venture capital funds, SPACs, and insurance syndicates are all organized with a limited lifespan.

Their motivation? This article claims that limited life is a valuable, but often overlooked, tool for ameliorating agency costs: the managers of a finite venture know they must produce …

Corporate Cybersecurity Governance: Director Liability Under Europe’S Nis2 Directive And The Emerging Fiduciary Duty Of Proactive Cybersecurity Oversight, Stacey B. Barrack

American University Business Law Review

This Comment examines the implications of the European Union’s Network and Information Security 2 Directive (“NIS2”) on corporate cybersecurity governance, with a particular focus on the fiduciary duties of directors in multinational corporations operating in the United States. The NIS2 Directive, adopted in 2023 and currently being transposed into national law by EU member states, mandates that boards of directors must directly approve and oversee—and can be liable for—the cybersecurity risk management measures taken by their companies. 

This Comment delves into the intersection of NIS2 with Delaware corporate law and examines how NIS2 influences the fiduciary duty of oversight for …

Can Corporations Be Trusted? Voluntary Compliance And The Limits Of Non-Coercive Business Regulation, Yuval Feldman

American University Business Law Review

This Article extends the voluntary compliance framework developed in Can the Public Be Trusted? The Promise and Perils of Voluntary Compliance, to the corporate context. While recent scholarship has explored when states can rely on non-coercive regulatory approaches with individual citizens, comparatively little attention has been paid to whether these insights translate to business entities. This Article argues that corporations present both greater challenges and greater opportunities for voluntary compliance regimes. On one hand, the instrumental orientation of corporate decision-making, amplified by fiduciary duties and competitive pressures, may systematically undermine the intrinsic motivations that voluntary compliance frameworks depend upon. Drawing …

Timing Whistleblowing, Andrew K. Jennings

Faculty Articles

Whistleblower programs (WBPs) expose hidden corporate wrongdoing. They do so by offering retaliation protection and financial bounties to those who bring original information to law enforcement about unseen, and often complex, misconduct. Under a standard account, whistleblowing serves the public interest by increasing the ex post detection of illegal activity and the ex ante risk of its exposure. That standard view—which centers whistleblowing on detecting wrongdoing—is incomplete, however. To present a fuller view, this Article introduces a complementary model that refocuses whistleblowing as preventing wrongdoing. Working together, these models show that a WBP can do more than enable detection at …

The Oxymoron At The Heart Of Delaware's Making Elon Happy Legislation, Franklin A. Gevurtz

McGeorge School of Law Scholarly Articles

Fearing that parties controlling corporations might incorporate elsewhere, Delaware has hurriedly enacted controversial legislation (SB-21) to reduce judicial scrutiny of dealings whereby such parties might further enrich themselves at the expense of public stockholders.

This article examines a basic problem with SB-21 that has been ignored in all the Sturm and Drang surrounding its enactment. Simply put, two key parts of the statute’s provisions addressing dealings by parties who control corporations are fundamentally at war with each other. These are the statute’s definition of controlling stockholder which focuses on the voting power to elect the directors and the statute’s provision …

Esg Is Not Libertarian: A Response To Jonathan Macey, Allen Mendenhall, Daniel Sutter

Emory Business Law Review

Investing, like any market activity, is voluntary. Investors may invest however they wish, whether to maximize returns, minimize risk, or support what they view as good causes. Is the current Environmental, Social and Governance (ESG) movement a libertarian embrace of socially responsible investing, as Jonathan Macey has argued? We answer with a definite no for several reasons. Government policies impel much ESG investment, most prominently through clean energy transition and financial regulations. Most ESG investment dollars stem not from investor decisions but from potential opportunism by managers of public pensions and sovereign wealth funds. Much investor activism for ESG results …

Corporate Responsibility In Business Dealings With War Criminals, Michael "Mac" Richards

Human Rights Brief

In the Democratic Republic of the Congo (DRC), a decades-long conflict has displaced over fourteen million people, killed over six million, and led to the highest rates of sexual violence among any other nation in the world. The DRC is the source of some of the most valuable resources used in the production of consumer electronics: gold, copper, and cobalt. Militia groups, such as Movement Du 23 Mars (M23) and the Allied Democratic Forces (ADF), are taking advantage of the nation’s vast mineral reserves by seizing control of local mining operations and exporting the minerals through neighboring Rwanda. These minerals …

Kedudukan Putusan Peradilan Etik Sebagai Keputusan Tata Usaha Negara: Studi Kasus Gugatan Hakim Konstitusi Anwar Usman, Satrio Febriyanto

Jurnal Hukum & Pembangunan

As an effort to concretize ethics, there is a process of formalizing ethics into a set of rules through a code of ethics. The code of ethics needs institutional enforcement instruments so that it can be effectively applied through ethical trials. Ethical courts, as institutions that adjudicate violations of the code of ethics, have the authority to issue decisions as a follow-up to cases of violations of the code of ethics that they handle. In carrying out its duties, ethical courts use ethical and moral analysis to assess the appropriateness of an action. This analytical approach differs from legal decisions …

Dualisme Tujuan Pembebanan Uang Pengganti: Analisis Putusan Angelina Sondakh Di Berbagai Tingkat Peradilan, Valencia Puspa Novandra Ali, Tamsil .

Jurnal Hukum & Pembangunan

Studi ini meneliti perbedaan interpretasi dan penerapan hukuman tambahan berupa restitusi (uang pengganti) dalam kasus korupsi melalui analisis komparatif keputusan Angelina Sondakh di pengadilan tingkat pertama, pengadilan banding, pengadilan kasasi, dan pengadilan peninjauan yudisial. Muncul interpretasi ganda antara memandang restitusi sebagai kompensasi atas kerugian keuangan negara dan sebagai mekanisme untuk menyita keuntungan ilegal. Judex facti menolak penerapan restitusi dengan alasan bahwa tidak terjadi kerugian negara dalam kasus suap dan gratifikasi, sementara judex juris di tingkat kasasi menafsirkan restitusi sebagai instrumen pemulihan aset yang ditujukan untuk keuntungan yang diperoleh secara ilegal. Orientasi konseptual yang bertentangan ini menghasilkan perbedaan signifikan dalam penjatuhan …

Politics As Usual: Racial Pay Inequity And The Illusion Of Inclusion In The Rise And Fall Of Diversity, Equity, Inclusion, And Accessibility Executive Orders, Francois C. Melville

West Chester University Graduate Theses, Dissertations, and Final Projects

This research examines pressing moral policy questions of our time: who determines when the United States of America has fulfilled its broken promise of equality for all, and what constitutes an appropriate measure of reparative justice. It interrogates why the Diversity, Equity, and Inclusion (DEI) Executive Orders (EOs) implemented across presidential administrations, intended to advance social equity, were grounded in conflict and symbolic gestures rather than scientifically evidenced issues such as wage inequality directly linked to upward career mobility. Race conscious policy generates cultural clashes centered on the perception that gains made by Black and Brown Americans come at the …

The Law And Ai As An “Apex Collaborator”: Legal Frameworks For Optimized Cooperation, David S. Filippi, Bill Tomlinson, Andrew W. Torrance

FIU Law Review

Law fundamentally exists to enable human cooperation, providing frameworks for everything from basic contracts to complex international agreements. As artificial intelligence systems grow more sophisticated, they may enable new ways that collaborative activity can occur. We posit the possibility of a new kind of AI entity: the “Apex Collaborator,” a computational system with capabilities for cooperation and partnership that are superior, in at least some ways, to those of humans. Just as apex predators shape the ecosystems in which they live through predation, Apex Collaborators would shape human-AI networks through their ability to enhance peaceful coexistence, collective problem-solving, and shared …

Private Equity In Healthcare: The Case For Stricter Regulations, Ryan Scivally

FIU Law Review

Private equity has become an increasingly influential force in American healthcare. Hundreds of billions of dollars have flown into healthcare acquisitions over the last decade, and a growing share of physician practices and health services are coming under investor control. This Comment argues that the current regulatory framework has not kept pace with that expansion. Existing federal tools, primarily antitrust and fraud enforcement, leave most transactions unreviewed because many deals fall below reporting thresholds. At the state level, doctrines such as the corporate practice of medicine are unevenly enforced and often avoided through management services’ organization structures. These structures preserve …

Owning Trading Opportunities, Kevin Douglas

FIU Law Review

Owning Trading Opportunities identifies the doctrines and policy rationales used to protect property rights in corporate opportunities. It then explores adopting these doctrines and rationales to reform the notions of "fairness," "public interest," "investor protection," "market confidence," and "economic efficiency" driving the regulation of insider trading.

This approach yields several benefits. First, it shows that a policy commitment to equal trading opportunities for all investors is the functional equivalent of a commitment to fostering equal access to information for all investors. The U.S. Supreme Court attempted to reject the latter but failed by embracing the former.

Second, corporate opportunity cases …

Kedudukan Hukum Eks-Kreditor Pasca Debt To Equity Swap Yang Dihomologasi Dalam Pkpu Kedua Dan Kepailitan Debitor Akibat Pembatalan Perdamaian, Reza Rahmawati

Jurnal Hukum & Pembangunan

Debt to Equity Swap (DES) under a composition plan in Suspension of Debt Payment Obligations (PKPU) proceedings constitutes a restructuring mechanism that transforms the legal status of a Creditor into that of a shareholder upon homologation. Legal issues arise when The Debtor subsequently enters a Second PKPU due to newly incurred debts or is declared bankrupt following the annulment of the composition, while Law No. 37 of 2004 on Bankruptcy and Suspension of Debt Payment does not expressly regulate the legal consequences of a DES under such circumstances. This normative legal research aims to analyze the legal standing and legal …