Business Organizations Law Commons^™

From White Noise To Sound Decisions: Overcoming Noise In Corporate Law, Maria Lucia Passador

American University Business Law Review

This article explores the realm of noise, which is characterized by the lack of discernible patterns and unpredictable nature, distinguishing it from biases in terms of features, implications, and solutions. After examining the integration of behavioral economics into legal matters, the article delves into the application of this framework in the context of corporate law.

Studying noise into corporate law offers valuable insights into specific areas. Needless to say, this paper sheds light on the legal practice of corporate law, encompassing aspects such as contractual matters, M&A due diligence, and corporate governance. Understanding the complexities of corporate transactions is particularly …

Fifa's One Association - One Vote Rule: Does Democratic Governance Ensure Its "Corporate" Integrity?, Ilias Bantekas

American University Business Law Review

This article suggests that in the absence of any requirement in favor of democratic governance of corporations and non-profit entities in national law, as well as in light of a general practice of bifurcated systems (oscillating between de jure equality and power-based governance) in respect of intergovernmental organizations, a nondemocratic governance structure in international sports federations would not deviate from the general rule. What is clearly at stake in complex organizations is effectiveness in achieving the aims of the organization, irrespective if all members are satisfied. The deceptively democratic nature of sporting federations such as FIFA is very much the …

The Original Instagram: Whose Property Is It?, Sue M. Altmeyer

American University Business Law Review

When a worker creates a personal social media account and then uses it to promote their employer, courts differ as to whether subsequent use by the employer can operate as an implied transfer of the account when the employment relationship ends. Allowing an implied transfer flies in the face of traditional contract and property law principles and results in workers unknowingly giving up their right to a valuable asset they created. The better rule in determining ownership of a social media account is to first determine who owned the account at the time of original creation and then determine whether …

A Theory Of Corporate Fiduciary Duties, Benjamin B. Johnson

UF Law Faculty Publications

Corporate law lacks a general theory of a board’s power as fiduciary, and consequently, the law governing corporate fiduciary duties is notably unstable. This Article offers a novel theory that grounds corporate fiduciary duties in stronger microeconomic and legal foundations. The theory, coined the Judicial Monitoring Model (JMM), shows that even imperfect judicial monitoring makes shareholders and boards better off, even when there is no claim of a breach of the duties of loyalty or care as currently understood. The JMM synthesizes the law governing corporate fiduciary duties and other doctrines that protect principals, beneficiaries, and creditors from the risk …

The Submerged Administrative State, Gabriel Scheffler, Daniel E. Walters

Articles

The United States government is experiencing a reputation crisis: after decades of declining public trust, many Americans have lost confidence in the government's capacity to perform its basic functions. While various explanations have been offered for this worrying trend, these existing accounts overlook a key factor: people are unfamiliar with the institutions that actually do most of the governing-administrative agencies-and they devalue what they cannot easily observe. The "submerged" nature of the administrative state is, we argue, a central reason for declining trust in government.

This Article shows that the administrative state is systematically submerged in two ways. First, administrative …

Reflections On Corporate Governance At Work, Margaret Blair, Matthew Bodie, June Carbone, Scott Dewey, George S. Georgiev, Grant Hayden, Claire Hill, Brett Mcdonnell, Sanjukta Paul, Silvie Rohr, Natalya Shnitser, Aaron Sojourner, Alvin Velazquez

Articles

No abstract provided.

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.

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 …