Law Commons^™

Corporate Environmental Reporting And Climate Change Risk: The Need For Reform Of Securities And Exchange Commission Disclosure Rules, Constance Z. Wagner

All Faculty Scholarship

This article argues for strengthened Securities and Exchange Commission (“SEC”) rules mandating the disclosure by businesses of the impacts of climate change on their operations. The author surveys the existing SEC regulatory scheme and concludes that it is insufficient since few companies are currently disclosing climate change risks in their SEC filings. Alternative approaches to filling the environmental risk disclosure gap are examined, but found to be poor alternatives to enhanced SEC requirements, since they fail to provide a scheme for uniform and consistent disclosures across companies.

Shareholders In The Jury Box: A Populist Check Against Corporate Mismanagement, Ann M. Scarlett

All Faculty Scholarship

The recent subprime mortgage disaster exposed corporate officers and directors who mismanaged their corporations, failed to exercise proper oversight, and acted in their self-interest. Two previous waves of corporate scandals in this decade revealed similar misconduct. After the initial scandals, Congress and the Securities and Exchange Commission attempted to prevent the next crisis in corporate governance through legislative and regulatory actions such as the Sarbanes-Oxley Act of 2002. Those attempts failed. Shareholder derivative litigation has also failed because judges accord corporate executives great deference and thus rarely impose liability for breaches of fiduciary duties.

To prevent the next crisis in …

Arrow's Theorem And The Exclusive Shareholder Franchise, Grant M. Hayden, Matthew T. Bodie

All Faculty Scholarship

In this essay, we contest one of the main arguments for restricting corporate board voting to shareholders. In justifying the limitation of the franchise to shareholders, scholars have repeatedly turned to social choice theory—specifically, Arrow’s theorem—to justify the exclusive shareholder franchise. Citing to the theorem, corporate law commentators have argued that lumping different groups of stakeholders together into the electorate would result in a lack of consensus and, ultimately, the lack of coherence that attends intransitive social choices, perhaps even leading the corporation to self-destruct. We contend that this argument is misguided. First, we argue that scholars have greatly overestimated …