Law Commons^™

Standing, Still? The Evolution Of The Doctrine Of Standing In The American And Israeli Judiciaries: A Comparative Perspective, Joshua Hoyt

Vanderbilt Journal of Transnational Law

The doctrine of standing plays an important role in limiting the classes of cases or controversies that are appropriate for judicial resolution; considered with other justiciability doctrines, judicial standing necessarily reflects the broader role of the court in society. Though the American judiciary had rather generous standing policies in place at the time of the founding, with the rise of the administrative state in the aftermath of the New Deal, progressive justices saw fit to restrict judicial standing as a means of insulating regulatory programs from industry challenge. In contradistinction, the young Israeli society has some of the most accessible …

Conflicting Justice In Conflict Of Laws, Roxana Banu

Vanderbilt Journal of Transnational Law

Choice-of-law rules determine which national law (not necessarily that of the forum) applies in private law matters that cross over multiple jurisdictions. Given the ubiquity of interpersonal cross-border relations, choice-of-law rules play an enormous role in securing justice in the transnational social realm. For example, they determine whether individuals can recover retirement benefits from worldwide investments through pension funds, whether they can receive compensation following an accident abroad, or whether their foreign marriages, divorces, adoptions, or support orders will be recognized or invalidated at home.

Yet the legal field of conflict of laws has always been divided between two theoretical …

The Law And Practice Of Shareholder Inspection Rights: A Comparative Analysis Of China And The United States, Robin H. Huang, Randall S. Thomas

Vanderbilt Journal of Transnational Law

Shareholder inspection rights allow a shareholder to access the relevant documents of the company in which they hold an interest, so as to address the problem of information asymmetry and reduce the agency costs inherent in the corporate structure. While Chinese corporate governance and American corporate governance face different sets of agency cost problems, this Article shows that shareholder inspection rights play an important role in both China and the United States. On the books, while shareholder inspection rights in both countries are broadly similar, there are some important differences on issues such as the proper purpose requirement. The empirical …

Addressing The Auditor Independence Puzzle: Regulatory Models And Proposal For Reform, Martin Gelter, Aurelio Gurrea-Martinez

Vanderbilt Journal of Transnational Law

Auditors play a major role in corporate governance and capital markets. Ex ante, auditors facilitate firms' access to finance by fostering trust among public investors. Ex post, auditors can prevent misbehavior and prevent financial fraud by corporate insiders. In order to fulfill these goals, however, in addition to having the adequate knowledge and expertise, auditors must perform their functions in an independent manner. Unfortunately, auditors are often subject to conflicts of interest, for example, resulting from the provision of nonaudit services but also because of the mere fact of being hired and paid by the audited company. Therefore, even if …

Management Succession In Korea: Tunneling, Semi-Tunneling, And The Reaction Of Corporate Law, Kyung-Hoon Chun

Vanderbilt Journal of Transnational Law

Recently in Korea, certain issues of corporate law became the subjects of fierce political debates unlike many other jurisdictions where corporate law issues generally remain in the exclusive realm of professionals and academics. This Article begins with the question of why corporate law issues attracted so much political attention in Korea and whether such political attention actually helped improve the corporate law. In pursuing the answers to such questions, this Article identifies a recurring pattern: (i) existence of strict rules against seeking private benefits; (ii) various clever measures to circumvent such rules; (iii) failure of the courts to regulate such …

Mixed Ownership Reform And Corporate Governance In China's State-Owned Enterprises, Jiangyu Wang, Tan Cheng-Han

Vanderbilt Journal of Transnational Law

This Article provides an early assessment of the impact on corporate governance of the most recent wave of reform of China's state-owned enterprises (SOEs) announced by the CCP in 2013, officially known as the mixed-ownership reform (MOR). It offers a comprehensive and detailed account of the background, policy and regulatory frameworks, and rationale of the MOR in light of the history of ownership reform in China. It also conducts empirical studies of the change in ownership and board composition in over 30 SOEs which have recently completed their MOR experiments, as well as several case studies. It observes that MOR's …

The Conundrum Of Common Ownership, Jennifer G. Hill

Vanderbilt Journal of Transnational Law

The common ownership debate has become one of the most contentious issues in corporate law today. This debate is a by-product of major changes to capital market ownership structure, which have triggered concerns about the rise of institutional investors, the growth of index investing, and the rapid concentration of ownership in major international financial markets. The common ownership theory focuses on concerns about the incentives of large financial institutions holding widely diversified portfolios of shares in competing companies within a particular economic sector. Proponents of the common ownership theory argue that, even where institutional investors have relatively small ownership stakes, …

Singapore's Puzzling Embrace Of Shareholder Stewardship: A Successful Secret, Dan W. Puchniak, Samantha S. Tang

Vanderbilt Journal of Transnational Law

In the wake of the 2008 Global Financial Crisis (GFC), the United Kingdom created the first stewardship code, which was designed to transform its rationally passive institutional investors into actively engaged shareholders. In the UK corporate governance context, this idea made sense. Institutional investors collectively own a sizable majority of the shares in most of the United Kingdom's listed companies. In turn, if the UK stewardship code could incentivize them to effectively monitor management to act as "good shareholder stewards"--the managerial short-termism and excessive risk-taking, which were identified as contributors to the GFC, could be avoided.

The United Kingdom's idea …

Deal Breakage In Domestic And Cross-Border Mergers And Acquisitions: New Data And Avenues For Research, Morgan Ricks

Vanderbilt Journal of Transnational Law

This Article presents a newly constructed mergers and acquisitions (M&A) data set that can support detailed analysis of deal outcomes, including deal breakage. The main novelty of the data set is a detailed classification scheme for characterizing deal outcomes, using information drawn from public announcements and news reports. The data set also includes a number of variables, hand gathered from press releases and merger agreements, that are unavailable in existing data sets in reliable form, or at all. The data set consists of all definitive, signed M&A transactions involving US public company targets with a deal value of at least …

Fintech And International Financial Regulation, Yesha Yadav

Vanderbilt Journal of Transnational Law

This Article shows that Fintech exacerbates the difficulties of standard setting in international financial regulation. Earlier work introduced the "Innovation Trilemma" (the Trilemma). When seeking to balance the goals of achieving market integrity and innovation through clear and simple rulemaking, regulators can--at best--achieve only two out of these three objectives. Fintech's unique characteristics--a reliance on automation and artificial intelligence, novel types of big data, as well as the use of disintermediating financial supply chains comprising a mix of traditional firms as well as technology specialists and newcomers--complicates the application of the Trilemma. Rulemaking struggles to achieve needed clarity where innovative …

The "Poison Pill" In The Usmca: The Erosion Of Wto Principles And Its Implications Under A Us-China Trade War, Gil Lan

Vanderbilt Journal of Transnational Law

The United States, Canada, and Mexico have ratified a multilateral trade agreement (the "USMCA") that contains a highly unusual provision. This provision (referred to as the 'Poison Pill") is intended to deter the signatories from entering into a free trade agreement (FTA) with any "non-market country." The Poison Pill was introduced by the United States in the wake of the US-China trade war and was most likely directed at deterring Canada from entering into an FTA with China.

This Article argues that the Poison Pill is functionally an expulsion clause (as opposed to a withdrawal clause) which violates the USMCA …

China's Belt And Road Initiative Is Reshaping Human Rights Norms, Mikkaela Salamatin

Vanderbilt Journal of Transnational Law

Since its birth in 2015, the Belt and Road Initiative has garnered significant attention for its benefits and its detriments. Much of the current scholarship in this area is focused on particular pieces of the Belt and Road Initiative, with few in legal scholarship considering the impact of the relationship between China's growing soft power and its effect on international law and international institutions. Every state has the right to pursue power and influence, but this Note specifically examines how China's methods of obtaining this power and influence--specifically through the Belt and Road Initiative and related actions within United Nations' …

Shareholder Protection In Close Corporations And The Curious Case Of Japan: The Enigmatic Past And Present Of Withdrawal In A Leading Economy, Alan K. Koh

Vanderbilt Journal of Transnational Law

Oppressed, outvoted, and outgunned, minority shareholders have an obvious solution for their woes: vote with their feet, sell their shares, and leave the company. But this "Wall Street Rule" is only available to shareholders in publicly listed corporations; shareholders in close corporations; privately owned business entities with no market for their shares--do not have the option of easy exit. Legal solutions which enable the shareholder to voluntarily exit a company with their capital such as the oppression or unfair prejudice remedies in US and Anglo-Commonwealth corporate law--what this Article classifies as "withdrawal remedies"--are therefore vital in close corporations.

However, until …

Algorithmic Speech And Freedom Of Expression, Alan Sears

Vanderbilt Journal of Transnational Law

Algorithms have become increasingly common, and with this development, so have algorithms that approximate human speech. This has introduced new issues with which courts and legislators will have to grapple. Courts in the United States have found that search engine results are a form of speech that is protected by the Constitution, and cases in Europe concerning liability for autocomplete suggestions have led to varied results. Beyond these instances, insight into how courts handle algorithmic speech are few and far between.

By focusing on three categories of algorithmic speech, defined as curated production, interactive/responsive production, and semi-autonomous production, this Article …

Interpretative Challenges Of 28 U.S.C. § 1782 In The Aftermath Of Intel Corp. V. Advanced Micro Devices, Inc., Gabriela B. Clark

Vanderbilt Journal of Transnational Law

The rise of globalization and the normalization of transnational commercial agreements motivated the United States to make commitments that seek to facilitate the resolution of international litigation and dispute resolution processes. One of the byproducts of the United States' commitment to international cooperation is 28 U.S.C.§ 1782, a statute that opens American courts to foreign parties seeking discovery for use in foreign proceedings. Continuous amendments to this statute, paired with a Supreme Court decision that provided an overly vague, unworkable balancing test, gave free rein to lower courts' discretionary powers, ultimately resulting in a myriad of conflicting decisions. This Note …

Something Is Not Always Better Than Nothing: Problematizing Emerging Forms Of Jus Ad Bellum Argument, David Hughes, Yahli Shereshevsky

Vanderbilt Journal of Transnational Law

Since the adoption of the UN Charter, an unending debate concerning the permissible exceptions to the use of force prohibition has filled the pages of countless law reviews. The resulting legal regime, the jus ad bellum, has become increasingly strained as the international community faces new threats and encounters unforeseen scenarios. The post-war legal architecture is, so the debate goes, either insufficiently enabled to address contemporary challenges or consistently undermined by actors who seek exceptions to the strict limits placed upon state conduct. Debates regarding different instances when force is used exhibit a predictable pattern. Those that wish to limit …

Traditional Knowledge In Taiwan: A Call For Greater Participation Of Indigenous Peoples In The Global Intellectual Property Marketplace, James M. Cooper

Vanderbilt Journal of Transnational Law

This Article explores the plight of the Aborigines of Taiwan and the legal protections that exist for their Traditional Knowledge. While Taiwan continues to face international isolation with a diminished number of states recognizing the Republic of China as the seat of China, the island's government has taken limited steps to recognize language, cultural, and economic rights of its Indigenous peoples. International law has not been helpful in protecting Traditional Knowledge, but Taiwan could use its vast economic resources and positive track record in protecting some of these rights to further its goals of international recognition. This Article details the …

Reciprocity In China-Us Judgments Recognition, William S. Dodge, Wenliang Zhang

Vanderbilt Journal of Transnational Law

The conventional wisdom is that China and the United States do not recognize each other's court judgments. But this is changing. A US court first recognized a Chinese judgment in 2009, and a Chinese court first reciprocated in 2017. This Article provides an overview of the enforcement of US judgments in China and Chinese judgments in the United States, noting the similarities and differences in the two countries' systems. In China, rules for the enforcement of foreign judgments are established at the national level and require reciprocity. In the United States, rules for the enforcement of foreign judgments are established …

Fortifying American Emergency Power: A Multinational Comparison To Contain Crises, Courtney Devore

Vanderbilt Journal of Transnational Law

Countries will inevitably face emergencies. Historically, governments have exercised immense power in response to emergencies. For responses to be quick and effective, emergency power operates outside of the normal rule of law. While disbanding the normal rule of law may be necessary from time to time to protect national security, the unilateral ability of government to take such action creates perverse incentives to abuse the power. Abuses of emergency power are found across the globe, most notably occurring in the United States recently.

In the wake of the Trump Administration, this Note seeks to identify how and why the US …

To Edit Or Not To Edit?--Regulating Crispr Transnationally, Ann Potter

Vanderbilt Journal of Transnational Law

After Chinese scientist Dr. He Jiankui's announcement that he had successfully edited the human genome using a new technology called CRISPR/Cas-9, Dr. He forced the world to address the ethical dilemmas introduced by gene-editing technologies. Born out of a historical tradition of human "improvement," gene-editing technologies like CRISPR/Cas-9 modify human genes down to DNA molecules. CRISPR can prevent and cure genetic diseases that have previously had no cure, but problems arise when CRISPR's use expands to enhancements or to modifications that would change the human genome permanently. Given CRISPR's potential profound impact, this Note analyzes how international bodies like the …

Data Imperialism: The Gdpr's Disastrous Impact On Africa's E-Commerce Markets, Cara Mannion

Vanderbilt Journal of Transnational Law

The European Union (EU) recently passed the General Data Protection Regulation--a sweeping regulatory framework that sets a new global standard for the collection, storage, and use of personal data. To ensure far-reaching compliance with the GDPR, the EU has adopted a strict take-it-or-leave-it approach--countries that wish to engage with digital users in the EU must either comply with the GDPR's expansive data obligations or risk losing access to the world's largest trading block.

This presents significant obstacles for several African nations. Notably, no African country currently has domestic laws that comply with the GDPR. Even if they did, several African …

Understanding The (Ir)Relevance Of Shareholder Votes On M&A Deals, Randall S. Thomas, James D. Cox, Tomas J. Mondino

Vanderbilt Law School Faculty Publications

Has corporate law and its bundles of fiduciary obligations become irrelevant? Over the last thirty years, the American public corporation has undergone a profound metamorphosis, transforming itself from a business with dispersed ownership to one whose ownership is highly concentrated in the hands of sophisticated financial institutions. Corporate law has not been immutable to these changes so that current doctrine now accords to a shareholder vote two effects: first, the vote satisfies a statutory mandate that shareholders approve a deal, and second and significantly, the vote insulates the transaction and its actors from any claim of misconduct incident the approved …

Corporate Oversight And Disobedience, Elizabeth Pollman

Vanderbilt Law Review

This Article explores the public-regarding purpose of the obedience and oversight duties in corporate law and provides a descriptive account of how they are applied in practice. The Article argues that the fidelity to external law required by the duty of good faith largely serves a legitimizing role for corporate law. Expressing obligations of legal compliance and oversight within corporate law acknowledges societal interests in the rule of law and preserves the ability of courts to flexibly respond to particularly salient and egregious violations of public trust, should they arise, without upending case law developed over decades.

Further, this Article …

After Corwin: Down The Controlling Shareholder Rabbit Hole, Ann M. Lipton

Vanderbilt Law Review

As Delaware has developed its doctrine with respect to controlling shareholders, its view of their relationship to directors has evolved. This evolution has produced some pronounced inconsistencies with respect to the weight placed on director approval of controlling shareholder action. The recent Delaware Supreme Court decisions in Corwin v. KKR Financial Holdings LLC, Kahn v. M & F Worldwide Corp., and C & J Energy Services, Inc. v. City of Miami General Employees’ and Sanitation Employees’ Retirement Trust introduced further uncertainty into the mix by making the determination as to whether a transaction involves a controlling shareholder practically outcome determinative …

Mootness Fees, Matthew D. Cain, Jill E. Fisch, Steven D. Solomon, Randall S. Thomas

Vanderbilt Law Review

In response to a sharp increase in litigation challenging mergers, the Delaware Chancery Court issued the 2016 Trulia decision, which substantively reduced the attractiveness of Delaware as a forum for these suits. In this Article, we empirically assess the response of plaintiffs’ attorneys to these developments. Specifically, we document a troubling trend—the flight of merger litigation to federal court where these cases are overwhelmingly resolved through voluntary dismissals that provide no benefit to the plaintiff class but generate a payment to plaintiffs’ counsel in the form of a mootness fee. In 2018, for example, 77% of deals with litigation were …

Introduction: Professor Randall Thomas’S Depolarizing And Neutral Approach To Shareholder Rights, James D. Cox, Frank Partnoy

Vanderbilt Law Review

Like Gaul, corporate law scholarship can be divided into three overflowing buckets: pro-manager, pro-shareholder, and empirical. We classify empirical scholarship as a separate category, in significant part because of Professor Randall Thomas. In the pre-Thomas era, much of the literature fell into the first two buckets, with empirical researchers deploying data collection and analysis to support their particular bent. Then Professor Thomas emerged as a distinctive empiricist. Throughout his career, he has published scores of path breaking studies while maintaining relative neutrality as to the normative implications. He does not deploy data and its analysis to advocate for particular positions, …

Lead Plaintiff Incentives In Aggregate Litigation, Charles R. Korsmo, Minor Myers

Vanderbilt Law Review

The lead plaintiff role holds out considerable promise in promoting the deterrence and compensation goals of aggregate litigation. The prevailing approach to compensating lead plaintiffs, however, provides no real incentive for a lead plaintiff to bring claims on behalf of a broader group. The policy challenge is to induce sophisticated parties to press claims not in their individual capacity but instead in a representative capacity, conferring a positive externality on all class members by identifying attractive claims, financing ongoing litigation, and managing the work of attorneys. We outline what an active and engaged lead plaintiff could add to the civil …

Calculating Sec Whistleblower Awards: A Theoretical Approach, Amanda M. Rose

Vanderbilt Law Review

The Dodd-Frank Act provides that Securities and Exchange Commission (“SEC”) whistleblower awards must equal not less than ten and not more than thirty percent of the monetary penalties collected in the action to which they relate; SEC Rule 21F-6 provides criteria that the SEC may consider in determining the award percentage within the statutory bounds. When applying the Rule 21F-6 criteria, the SEC is required to think only in percentage terms, ignoring the dollar payout the award will actually yield. Last June, the SEC proposed to change this, at least in cases where the existing methodology would yield an award …

The Other Janus And The Future Of Labor’S Capital, David H. Webber

Vanderbilt Law Review

Two forms of labor’s capital—union funds and public pension funds— have profoundly reshaped the corporate world. They have successfully advocated for shareholder empowerment initiatives like proxy access, declassified boards, majority voting, say on pay, private fund registration, and the CEO-to-worker pay ratio. They have also served as lead plaintiffs in forty percent of federal securities fraud and Delaware deal class actions. Today, much-discussed reforms like revised shareholder proposal rules and mandatory arbitration threaten two of the main channels by which these shareholders have exercised power. But labor’s capital faces its greatest, even existential, threats from outside corporate law. This Essay …

Automating Securities Class Action Settlements, Jessica Erickson

Vanderbilt Law Review

This Article argues that the time has come to modernize the distribution of settlement funds in securities class actions. There are two possible ways to modernize this process. The first approach relies on market innovation, proposing an automated system that collects the relevant transaction data from individual banks and brokers. Claims administrators could then use this data to calculate every class member’s pro rata share of the settlement and send them their money. The second approach relies on regulatory innovation using the SEC’s Consolidated Audit Trail, which, once it is up and running, will contain a complete record of nearly …