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New Principles For Corporate Law, Kent Greenfield
New Principles For Corporate Law, Kent Greenfield
Kent Greenfield
The fundamental assumptions of corporate law have changed little in decades. Accepted as truth are the notions that corporations are voluntary, private, contractual entities, that they have broad powers to make money in whatever ways and in whatever locations they see fit. The primary obligation of management is to shareholders, and shareholders alone. Corporations have broad powers but only a limited role: they exist to make money. Those who maintain these principles – a group that includes most of the legal scholars who teach and write in the area – have derived the narrow role of corporations in one of …
Does Shareholder Proxy Access Damage Share Value In Publicly Traded Companies?, J.W. Verret, Thomas Stratmann
Does Shareholder Proxy Access Damage Share Value In Publicly Traded Companies?, J.W. Verret, Thomas Stratmann
John W Verret
The field of corporate governance has long considered the costs of the separation of ownership from control in publicly traded corporations and the regulatory and market structures designed to limit those costs. The debate over the efficiency of regulations designed to limit agency costs has recently focused on the SEC’s new rule requiring companies to include shareholder nominees on the company financed proxy statement to facilitate insurgent challengers to incumbent board members in board elections. A recent vein of empirical literature has examined the stock price effects of events surrounding the new proxy access rule. We present a study that …