Corporations play a central role in modern economies. Certain beliefs about corporations and corporate law are widely held and relied upon by business experts, the financial press, and economists who study the firm. Unfortunately, some of these widely-held beliefs are mistaken. This has led to numerous common errors in the way corporate law concepts are understood and applied. The authors of this Summary are experts versed in a variety of national legal systems, including those of the U.S. and U.K. as well as the E.U. We provide this simple Summary of certain fundamentals of corporate law, applicable in almost all jurisdictions, in an effort to help prevent analytical errors which can have severe and damaging effects on corporations and corporate governance.
Stout, Lynn A. and Robé, Jean-Philippe and Ireland, Philip and Deakin, Simon F. and Greenfield, Kent and Johnston, Andrew and Schepel, Harm and Blair, Margaret M. and Talbot, Lorraine E. and Dignam, Alan J. and Dine, Janet and Millon, David K. and Sjåfjell, Beate and Villiers, Charlotte Louise and Williams, Cynthia A. and Koutsias, Marios and Pendleton, Andrew and Davis, Gerald F. and Galanis, Michael and Chandler, David and Keay, Andrew R. and Moore, Marc T. and Du Plessis, Jean and Bather, Andrea J and Lefler, Beau Linton and Bradshaw, Carrie and Bruner, Christopher M. and Joo, Thomas Wuil and Greenwood, Daniel J.H. and Clarke, Thomas and Johnson, Lyman P. Q. and Mulazzi, Floriana and Lipton, Martin and Liao, Carol and Johnson, Rebecca and Alon-Beck, Anat and Markel, Greg and Currie, Wendy and Partnoy, Frank and Peklar, Leonardo F. and Di Miceli da Silveira, Alexandre and Sitbon, Ofer and González-Cantón, Cesar and Chanteau, Jean-Pierre and Donaggio, Angela Rita Franco and Esser, Irene-Marie and North, Gill and Gramitto Ricci, Sergio Alberto and Tomasic, Roman A. and Pillay, Renginee G and O'Kelly, Ciarán and Keating, Con and Willmott, Hugh Christopher and Veldman, Jeroen and Morrow, Paige, The Modern Corporation Statement on Company Law (October 6, 2016). Available at SSRN: https://ssrn.com/abstract=2848833 or http://dx.doi.org/10.2139/ssrn.2848833