Business Organizations Law Commons^™

Taxing The New With The Old: Capturing The Value Of Data With The Corporate Income Tax In Virginia, Coleman H. Cheeley

Law Student Publications

The Commonwealth of Virginia markets itself as “The Largest Data Center Market in the World.” In 2019, the Northern Virginia market alone was the largest in the United States by inventory, with room to grow. In 2021, data centers in Northern Virginia required an estimated 1,686 megawatts of power; that number is expected to increase by 200 megawatts in the near future, reflecting data centers currently under development. For reference, in 2022, it was estimated that more than 100 homes could be powered by one megawatt of solar power in Virginia. Historically, data centers have been located in the Commonwealth …

Exiting The Disaster, Evading The Responsibility? Wadi Al-Qamar -- The Moon Valley, Suzan Nada

Perspectives

This essay explores a case that delivered no results for the complainants, where harm was not prevented, and where stakeholders who filed the complaint were not compensated. Investigated by the Compliance Advisor Ombudsman (CAO) of the International Finance Corporation (IFC), the Wadi al-Qamar case illustrates some of the limitations of accountability mechanisms in limiting the harms caused directly or indirectly by projects in which the International Financial Institutions (IFIs) invest.

Shareholder Primacy Versus Shareholder Accountability, William W. Bratton

Seattle University Law Review

When corporations inflict injuries in the course of business, shareholders wielding environmental, social, and governance (“ESG”) principles can, and now sometimes do, intervene to correct the matter. In the emerging fact pattern, corporate social accountability expands out of its historic collectivized frame to become an internal subject matter—a corporate governance topic. As a result, shareholder accountability surfaces as a policy question for the first time. The Big Three index fund managers, BlackRock, Vanguard, and State Street, responded to the accountability question with ESG activism. In so doing, they defected against corporate legal theory’s central tenet, shareholder primacy. Shareholder primacy builds …

Verses Turned To Verdicts: Ysl Rico Case Sets A High-Watermark For The Legal Pseudo-Censorship Of Rap Music, Nabil Yousfi

Seattle University Law Review

Whichever way you spin the record, rap music and courtrooms don’t mix. On one side, rap records are well known for their unapologetic lyrical composition, often expressing a blatant disregard for legal institutions and authorities. On the other, court records reflect a Van Gogh’s ear for rap music, frequently allowing rap lyrics—but not similar lyrics from other genres—to be used as criminal evidence against the defendants who authored them. Over the last thirty years, this immiscibility has engendered a legal landscape where prosecutors wield rap lyrics as potent instruments for criminal prosecution. In such cases, color-blind courts neglect that rap …

Catalyzing Climate Resilience In The Electric Utility Sector: Investor-Backed Utilities Must Prepare For The Approaching Storm, Jose J. Gonzalez

Emory Business Law Review

Communities and businesses that fail to take proactive measures will be devastated by the impacts of climate change. Across the United States, public and private entities have taken steps to protect companies and communities from climate change. However, financial restrictions and shareholder concerns have slowed such a response from the electric utility sector. This inaction has devastated communities such as Paradise, California and Lahaina, Hawaii. This Comment identifies how electric utility companies should utilize recently passed federal legislation, including the Bipartisan Infrastructure Law and Inflation Reduction Act, to finance large-scale projects to update America's power grid. This Comment also argues …

Negotiating For Certainty In An Uncertain World, Matthew D. Kent

Emory Business Law Review

No abstract provided.

Corporate Governance Through Social Media, Christina M. Sautter

Faculty Journal Articles and Book Chapters

Retail investors and other stakeholders are vigorously and loudly taking positions regarding corporate governance issues on social media. They are gathering on social media to discuss which stocks to invest in and to debate and collectively act on corporate governance-related matters. Propelled by new technologies and social media, retail investor engagement has shifted away from traditional venues like corporate voting and shareholder proposals. Retail investors have opened tens of millions of new brokerage accounts since 2020. These new retail investors, primarily Millennials and GenZ’ers, are adept at using technology and naturally gather and obtain information on social media. A co-author …

Rowling Record 2023-2024, The Robert B. Rowling Center For Business Law & Leadership

Rowling Record

No abstract provided.

Of Convergence And Contingency: Some Thoughts On Public Firm Fiduciary Duties, Jay B. Kesten

Scholarly Publications

No abstract provided.

Corporate Law As Decolonization, Martin W. Sybblis

Faculty Articles

After centuries of colonial subordination, Black and Brown former colonies are still fighting to achieve the fruits of decolonization. The traditional theory is that former colonies will emerge from the colonial period with the legal mandate and international recognition needed to chart their own futures. But, for those Black and Brown British colonies that achieved political independence, it became clear that, without economic strength to care for their societies, legal separation could not deliver on its promise of freedom from subordination. This Article argues that investments in corporate law innovations by some jurisdictions, such as Bermuda, the British Virgin Islands, …

Criminal Recordkeeping, Andrew K. Jennings

Faculty Articles

Business managers must create and keep records for decision-making. Yet doing so presents an obvious problem for those who manage illegal businesses: their records would make for powerful evidence in the hands of prosecutors. That problem raises a question—why would one knowingly create and keep such records when their mere existence risks detection and sanction? The answer, in short, is that the interaction of illicit activity’s complexity and continuity compels recordkeeping. A business, including a criminal one, cannot be managed without adequate information about its operations, obligations, and condition. Just how complex and long-lived its affairs are will drive the …

Human Capital Disclosure & Corporate Governance: The New Evidence, George S. Georgiev

Faculty Articles

This Article explores the evolution of human capital disclosure—firm-supplied information about various workforce-related matters—as a factor in contemporary corporate governance. Regulatory and nonregulatory developments from recent years have upended longstanding practices and generated extensive new evidence. Most notably, the Securities and Exchange Commission (SEC) adopted a human capital management (“HCM”) disclosure mandate in 2020, which, though long overdue, was criticized from the outset for its modest scope and lax design. In the meantime, courts have taken a renewed interest in board of directors’ oversight responsibilities in a number of areas, including HCM, while labor’s power has unexpectedly increased in some …

Criminal Subsidiaries, Andrew K. Jennings

Faculty Articles

Corporate groups comprise parent companies and one or more subsidiaries, which parents use to manage liabilities, transactions, operations, and regulation. Those subsidiaries can also be used to manage criminal accountability when multiple entities within a corporate group share responsibility for a common offense. A parent, for instance, might reach a settlement with prosecutors that requires its subsidiary to plead guilty to a crime, without conviction of the parent itself—a subsidiary-only conviction (SOC). The parent will thus avoid bearing collateral consequences—such as contracting or industry bars—that would follow its own conviction. For the prosecutor, such settlements can respond to criminal law’s …

Legal Risk And Accountability In Development Finance: Lessons From Jam V. International Finance Corporation, Michelle Harrison, Shannon Marcoux

Perspectives

In a landmark decision in 2019, the U.S. Supreme Court ruled in Jam v. International Finance Corporation that international organizations like the International Finance Corporation (IFC), the private lending arm of the World Bank Group, can be sued in U.S. courts, ending the “absolute immunity” from suit that they had long claimed. The Jam lawsuit arose out of IFC’s gross mishandling of the Tata Mundra coal-fired power plant project in Gujarat, India, which has destroyed the livelihoods, environment, and way of life of local communities living in its shadow. The lawsuit, and especially the clash between IFC’s sweeping assertions of …

Section 94 Of The Land Code B.E. 2497: Legal Issues Concerning Illegal Acquisition, Disposal, And Retention Of Land By Foreigners, Methawee Suephithakmongkhon

Chulalongkorn University Theses and Dissertations (Chula ETD)

In practice, many foreigners have managed to acquire land in Thailand through nominee structures or proxy companies, despite legal prohibitions. Even when such unlawful acquisitions are discovered, Section 94 of Thailand’s Land Code B.E. 2497 does not penalize the conduct but instead allows foreigners to dispose of the land and retain both their initial investment and any resulting profit. This Independent Research Paper investigates Section 94 of Thailand’s Land Code B.E. 2497, a provision that permits foreigners who have unlawfully acquired land to dispose of it and retain the proceeds. Despite the formal prohibition on foreign land ownership, Section 94 …

Analysis On Investor Protection In Myanmar Under The Myanmar Investment Law 2016, Ei Ei Htwe

Chulalongkorn University Theses and Dissertations (Chula ETD)

This paper explores the legal protections offered to foreign investors under the Myanmar Investment Law 2016 (MIL 2016), focusing on how these protections are structured, how they are applied in practice, and how they compare with international and regional standards. The law contains key provisions aimed at creating a stable and transparent investment environment. In particular, Section 47 ensures national treatment for foreign investors, meaning they should be treated no less favorably than local investors in similar situations. Section 48 commits to fair and equitable treatment (FET) and transparency, which are essential for ensuring that government decisions affecting investors are …

Whistleblower Protection In The Private Sector: A Comparative Study Of Laws In Thailand, The Us, And The Uk, Lena Sukprasongphol

Chulalongkorn University Theses and Dissertations (Chula ETD)

Whistleblower protection plays a vital role in promoting transparency, deterring misconduct, and strengthening regulatory and corporate accountability. Despite its importance, Thailand’s current legal framework for protecting private-sector whistleblowers remains fragmented and underdeveloped. In the absence of a dedicated statute, legal protections are primarily dispersed across general labour and securities laws, leaving significant legal and practical gaps that undermine effective protection. This study adopts a doctrinal legal methodology to examine the scope and effectiveness of existing Thai legal provisions, identifying key areas of ambiguity and weakness in both legislation and enforcement. To inform and strengthen the analysis, a comparative legal approach …

Legal Loopholes And Uncertainties Of Nominee Structures Under Foreign Business Law Of Thailand: Comparative Analysis With Austrian Investment Law, Harald Hinterer

Chulalongkorn University Theses and Dissertations (Chula ETD)

Laws and regulations concerning foreign direct investments in Thailand are at an all-time high. One of the most relevant legal bases for foreign direct investment is the Foreign Business Act B.E. 2542 (1999) (the “FBA”), which imposes restrictions on certain business activities. This research paper critically examines the effectiveness of the FBA in regulating foreign direct investment, with particular attention to nominee structures that may be used to circumvent statutory ownership restrictions. While the FBA aims to strike a balance between attracting foreign investment and protecting national interests, by focusing solely on capital shareholding, it contains loopholes which permit a …

Legal Reform Of Delivery Of Goods Without The Original Bill Of Lading In China: Study Of The Rotterdam Rules, Shuting Wu

Chulalongkorn University Theses and Dissertations (Chula ETD)

The delivery-against-document principle is a fundamental principle in the international maritime transport trade order and also an obligation that the carrier should fulfil when delivering the goods. In recent years, the issue between transaction security and transaction convenience have emerged with the entry into force of regional agreements such as RCEP. In practice, carriers often deliver goods without original bills of lading for the sake of cost and efficiency, leading to a series of legal disputes. Countries around the world have not formed a unified legal system for this either, and a chaotic situation has emerged in legislation. This research …

The Problem Of Copyright Infringement In Text And Data Mining (Tdm) Under The Copyright Act B.E. 2537: A Comparative Study Between Thailand, The United States, The United Kingdom, Japan And China, Pornpepat Suwannachairob

Chulalongkorn University Theses and Dissertations (Chula ETD)

This article examines the problem of copyright infringement in the context of Text and Data Mining (TDM) under Thailand’s Copyright Act B.E. 2537 (1994), comparing it with the legal frameworks of the United States, the United Kingdom, Japan, and China. TDM, a key process in extracting insights from large datasets, often requires reproducing copyrighted materials, raising copyright infringement concerns. While countries like Japan and the U.S. have adopted flexible or specific exceptions facilitating TDM, Thailand’s current legal structure, particularly Section 32 and its interpretation by the Supreme Court, offers limited scope for such activities. This restrictiveness hinders innovation and places …

Legal Ambiguities Of Anonymous Shareholder Under A Nominee Shareholding Agreement In China, Meng Lin

Chulalongkorn University Theses and Dissertations (Chula ETD)

The nominee shareholding agreement, as a flexible investment arrangement, caters to the specific needs of the Chinese commercial environment, such as safeguarding privacy, circumventing investment restrictions, and facilitating the intergenerational transfer of family businesses. While such agreements have played a positive role in broadening investment channels and promoting the development of a market-oriented economy, their inherent secrecy and lack of regulatory clarity have also introduced instability and legal uncertainty into the market. Despite the widespread use of nominee shareholding agreements in China, there is still no comprehensive and explicit legal framework to define their nature or to regulate their use. …

Legal Issues Of Consumer Rights Protection In China’S Cross-Border E-Commerce Under The Rcep Framework, Peilin Zhang

Chulalongkorn University Theses and Dissertations (Chula ETD)

This research examines legal shortcomings in China’s cross-border e-commerce consumer protection regime under the RCEP framework. It identifies key issues including fragmented jurisdiction, inadequate Online Dispute Resolution (ODR) mechanisms, insufficient personal information safeguards, and weak regulatory coordination. Although China’s E-Commerce Law and related statutes have established a foundation, they fall short in addressing cross-border complexities. Drawing on RCEP’s consumer protection provisions, the study proposes targeted reforms: improving jurisdictional clarity through party autonomy and denationalization principles; clarifying the legal status of ODR and unifying procedural standards; strengthening personal information protection through tiered consent and clear withdrawal mechanisms; and enhancing inter-agency coordination …

Beyond Profit Motives, William J. Moon

Faculty Scholarship

Why do corporations exist? Generations of legal scholars have debated both the origins of business corporations and their purpose.1 Professor Stephen Bainbridge’s new book The Profit Motive: Defending Shareholder Value Maximization is a substantial contribution to this literature and an essential read for anyone who wishes to better understand a controversy that has an immense impact on how movers and shakers of today’s largest corporations make decisions.

Why Do Banks Fail Together? Evidence From Executive Compensation, Deniz Anginer, Jinjing Liu, Cindy A. Schipani, H. Nejat Seyhun

Fordham Journal of Corporate & Financial Law

Recent bank failures have elicited extensive interest about the causes, focusing on incompetence of bank executives, policymakers, bank regulators and supervisors and even uninsured depositors. Yet, before we can prescribe solutions to bank failures, we need to identify the correct causes of the underlying problems. We argue that the problem is not so much with incompetence of executives, depositors, or regulators per se, but rather with managerial incentives.

We provide both a conceptual basis as well as empirical evidence to show that bank executives have incentives to increase systemic risks in order to maximize the benefits of bank bailouts. Consequently, …

A Bona Fide Dispute: Can Bankrupt Debtors Sell Assets Free And Clear Of Federal Civil Forfeiture Claims?, Joseph Peter Gomez

Fordham Journal of Corporate & Financial Law

Auctions are wheeling-dealing extravaganzas in which frenzies of bidders fight over shiny objects. What would happen if the government busted down the doors of the auction house, took the shiny objects, and sold them online? An asset sale through section 363(b) of the Bankruptcy Code provides a court-supervised opportunity to maximize economic value for the bankruptcy estate. To sell estate assets, the debtor must either (1) pay off each creditor holding an interest in the assets or (2) strip the creditor’s interest and attach it to the proceeds of the sale. When the government asserts a civil forfeiture claim against …

Another Major Question: The Department Of Labor Should Retire The Tiebreaker Rule And Reemploy Pecuniary Language In Erisa, Brandon Chesner

Fordham Journal of Corporate & Financial Law

The Employee Retirement Income Security Act of 1974 (“ERISA”) soon turns 50. Instead of celebrating with cake, retirees and future retirees alike get to witness a new chapter in the debate over the consideration of Environmental, Social, or Governance (“ESG”) factors in investing with plan assets. As employees cross the bridge into retirement, they look to their 401(k)s and pension plans for peace of mind, for it is ERISA that has been working silently in the background establishing minimum standards, practices, and fiduciary duties to protect participants. In recent years, the U.S. Department of Labor (“DOL”) has passed three regulations—two …

Speech Without Speakers: Eliminating Artificial Barriers To Pleading Corporate Scienter In Securities Fraud Claims, Jennifer Ligansky

Fordham Journal of Corporate & Financial Law

To successfully plead securities fraud claims under Rule 10b–5, the Private Securities Litigation Reform Act (“PSLRA”) requires that plaintiff-investors raise a “strong inference” that the defendant acted with scienter when issuing a false statement. But pleading scienter presents a challenging issue when the defendant is not a person, but an entity. When the defendant is a corporation, U.S. Circuit Courts of Appeals have adopted different approaches for determining whether the plaintiff has pleaded a strong inference of scienter. Some circuits hold that plaintiffs can raise a strong inference of corporate scienter only if the complaint identifies a speaker who knew …

The Lease Of All Evils: How A Middle-Ground Approach Can Resolve The Bankruptcy Code Conflict Between Section 363(F) Sales And Section 365(H) Lessee Protections, Kate Christensen

Fordham Journal of Corporate & Financial Law

The Fifth Circuit’s recent decision in In re Royal St. Bistro, LLC has awakened an unsettled issue in the Bankruptcy Code that has divided the bankruptcy community for over two decades. The question examined by the Fifth Circuit was whether a non-debtor lessee with a right to continued possession through section 365(h) of the Bankruptcy Code loses this right if the debtor-lessor can sell its property “free and clear” under section 363(f). While early decisions held that section 365(h) always protects lessees against debtors’ free and clear sales, some subsequent decisions created a circuit split by ruling that section 365(h) …

Foreword, Emily Montalvo, Natalie Tantisirirat

UC Law Business Journal

No abstract provided.

How European Human Rights Law Will Reshape U.S. Business, Rachel Chambers, David Birchall

UC Law Business Journal

In recent years several European states have enacted human rights due diligence laws, culminating in the imminent EU-wide Corporate Sustainability Due Diligence Directive.

This article provides a comprehensive analysis of these laws and explores their potential impact on U.S. businesses. Human rights due diligence emerges from the United Nations Guiding Principles on Business and Human Rights (2011) and was originally conceived as a voluntary means by which corporations could demonstrate that they proactively monitor and manage potential human rights abuses within their corporate group and supply chains. Since 2017, European states have begun enacting binding human rights due diligence laws. …