Law Commons^™

The Continuing Battle Over Economically Targeted Investments: An Analysis Of The Department Of Labor's Interpretative Bulletin 2015-01, Edward A. Zelinsky

Articles

In Interpretive Bulletin 2015-01 (IB 2015-01), the U.S. Department of Labor (DOL) renewed the now two-decades old battle over “economically targeted investments” (ETIs). As a matter of statutory interpretation, IB 2015-01, like its predecessors, is unpersuasive. The Employee Retirement Income Security Act of 1974 (ERISA) requires plan trustees to invest “solely” to provide participants’ retirement benefits. A trustee who invests in ETIs violates this statutory obligation by pursuing collateral economic benefits for persons other than plan participants. As a matter of policy, the social investing which ETIs exemplify is unsound. At best, such social investing in practice merely shuffles investment …

The Wisdom Of Crowds? Groupthink And Nonprofit Governance, Melanie B. Leslie

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Scandals involving nonprofit boards and conflicts of interest continue to receive considerable public attention. Earlier this year, for example, musician Wyclef Jean's Yele Haiti charity became the target of intense criticism after the charity disclosed that it had regularly transacted business with Jean and entities controlled by Jean and other directors. Although scandals caused by self-dealing undermine public confidence in the charitable sector, they continue to erupt. Why do charitable boards sanction transactions with insiders?

This Article argues that much of the blame lies with the law itself. Because fiduciary duty law is currently structured as a set of fuzzy …

Helping Nonprofits Police Themselves: What Trust Law Can Teach Us About Conflicts Of Interest, Melanie B. Leslie

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Common Law, Common Sense: Fiduciary Standards And Trustee Identity, Melanie B. Leslie

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The past twenty years have seen significant changes in the law governing trustees' fiduciary duties. Though fiduciary duty law is a common law creation, recent changes are not a result of common-law evolution, but legislative action. The push to codify trust law, including fiduciary duties, has come from a few sources, including academics, who have argued that trust law should be more uniform, and banking institutions, who have pushed for legislation to ease the burdens of trust management.

In some significant respects, legislative changes to fiduciary duties have not improved upon the common law. In fact, a few important statutes …

Trust Protectors, Agency Costs, And Fiduciary Duty, Stewart E. Sterk

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First used in conjunction with offshore trusts, trust protectors have begun to appear in domestic trusts as well. In part, the protector appears designed to reduce agency cost problems associated with the trust form. But the emergence of trust protectors raises a new set of agency cost problems: first, do protectors owe any enforceable duties to the trust beneficiaries, or to anyone else; second, how, if at all, do the powers conferred on the trust protector affect the responsibilities of the trustee? Current doctrine has not yet answered these questions. And the answers may differ depending on the purposes for …

Trusting Trustees: Fiduciary Duties And The Limits Of Default Rules, Melanie B. Leslie

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No abstract provided.

On The Allocation Of Burdens Of Proof In Corporate Law: An Essay On Fairness And Fuzzy Sets, Charles M. Yablon

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The Advance Fee Payment Dilemma: Should Payments Be Deposited To The Client Trust Account Or To The General Office Account?, Lester Brickman

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The Dilemma Of The Local Social Investment: An Essay On 'Socially Responsible' Investing, Edward A. Zelinsky

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Capturing Fiduciary Obligation: Shepherd's Law Of Fiduciaries, Arthur J. Jacobson

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No abstract provided.