Growth and the Lost Legitimacy of Business Organisation: Time to Abandon Corporate Law Reform

Journal of Corporate Law Studies, Forthcoming, DOI.org/10.1080/14735970.2019.1679418

Posted: 14 Nov 2019 Last revised: 3 Dec 2019

Date Written: October 29, 2019

Abstract

Business organisation still reflects and reproduces the dated idea of ‘economic growth as progress' irrespective of its social hazards. Recalibrating the grounding of business organisation's legitimacy requires radical legal reform in order to accommodate the relegation of growth as a lower order objective. However, this article shows that the normative debate in corporate law scholarship is unable to resolve the legitimacy problem of business organisation and ultimately reflects and reproduces the ideal of ‘growth as progress’. The problem is corporate law per se. Thus, the article argues that, even if these normative difficulties could be surpassed, instituting a new legitimacy for business organisation through corporate law reform - the conventional remedy - is, at best, practically impossible or, worse, harmful, because it is bound to follow conformist logic. Consequently, it is preferable to abandon corporate law reform completely and policy should focus instead on enabling radical organisational practice already occurring in the social margin.

Keywords: Corporate law, business organisation, economic growth, bureaucracy, managerial capitalism

Suggested Citation

Galanis, Michael, Growth and the Lost Legitimacy of Business Organisation: Time to Abandon Corporate Law Reform (October 29, 2019). Journal of Corporate Law Studies, Forthcoming, DOI.org/10.1080/14735970.2019.1679418, Available at SSRN: https://ssrn.com/abstract=3481099

Michael Galanis (Contact Author)

University of Manchester ( email )

Oxford Road
Manchester, M13 9PL
United Kingdom

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