Limited Liability, Shareholder Rights And The Prob

Cambridge Journal of Economics 2010, 34, 837856 doi:10.1093/cje/ben040 Advance Access egress 28 November 2008 hold in liability, sh areholder rights and the problem of incarnate irresponsibleness paddy field Ireland* There has long been a drop-off to see the incorporate jural hammer as curtly constituted as stintingally determined, as the more or less indispensable product of the demands of advanced technology and economic ef?ciency. Through an examen of its historical payoff, focusing in detail on the conception of prevalent particular(a) liability and the knowledge of the modern teaching of separate corporate personality, this paper takes return key with this view, arguing that the corporate legal form was, and is, in wide-ranging part a political construct developed to lodge and protect the rentier investor. It is, moreover, a construct which institutionalises irresponsibility. Against this backdrop different shipway of trying to fragment the problem of corporate irresponsibility are explored. The key, the paper suggests, is to be found in decoupling the privilege of limited liability from rights of control. mention words: Corporate governance, Corporate irresponsibility, Limited liability, Rentier investment JEL classi?cations: B10, B20, B50, K00, L00, N00, D20 Downloaded from hypertext transfer protocol://cje.oxfordjournals.

org/ by guest on March 31, 2012 1. Introduction Free incorporation by readjustment came to Britain in 1844, followed in 1855 by general limited liability, effectuateting in place two of the primaeval elements of the corporate lega l form that has come to dominate business l! ine organisation well-nigh the world. There has long been a tendency to see the emergence of the corporate legal form as not requiring a lot in the way of explanation. It is widely regarded, as one conclave of corporate law scholars recently put it, as bring on by economic exigencies (Kraakman et al., 2004, p. 1). Its key elementslegal personality, limited liability, conveyable shares, delegated management and...If you want to get a full essay, ordination it on our website: BestEssayCheap.com

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