The Shareholder in France and the United States: A Comparative Analysis of Corporate Legal Priorities

Business & Law Review, Business & Law Association (Association Droit & Affaires (AD&A)) Paris, 17th Ed. 2020. Available on LexisNexis and Lexis360 (Fr).

24 Pages Posted: 2 Dec 2020 Last revised: 31 Mar 2021

See all articles by Forrest G. Alogna

Forrest G. Alogna

Darrois Villey Maillot Brochier

Hadrien Bourrellis

Darrois Villey Maillot Brochier

Bertrand Cardi

Darrois Villey Maillot Brochier

Matthew T. Carpenter

Wachtell, Lipton, Rosen & Katz

Adam O. Emmerich

Wachtell, Lipton, Rosen & Katz

Theodore N. Mirvis

Wachtell, Lipton, Rosen & Katz

Date Written: November 1, 2020

Abstract

The fundamental question in the law of business organizations – what is the purpose of the corporation? – contains a related question of constituencies and therefore priorities among them – whom does the corporation serve? If, for example, the purpose that justifies the existence of the corporation is the maximization of share price, then it follows that the corporation exists to serve the shareholders that are the beneficiaries of share price increases. The answers to such questions are encoded in the laws governing the decisions of a corporation’s directors and managers and regulating the transactions that allocate the benefits and the burdens of a corporation’s activity. Different societies have reached different conclusions and enshrined different priorities in their respective legal regimes. And while the modern global corporation does business – and may serve stakeholders – far beyond the borders of its jurisdiction of incorporation, these fundamental questions of purpose are generally still determined by the lawmakers in the corporation’s place of incorporation.

Keywords: Comparative Law, Corporate Sustainability, Corporate Governance, Shareholders, US, U.S., USA, United States, France, Shareholder Primacy, Corporation Purpose

JEL Classification: K20, K22, K33

Suggested Citation

Alogna, Forrest G. and Bourrellis, Hadrien and Cardi, Bertrand and Carpenter, Matthew T. and Emmerich, Adam O. and Mirvis, Theodore N., The Shareholder in France and the United States: A Comparative Analysis of Corporate Legal Priorities (November 1, 2020). Business & Law Review, Business & Law Association (Association Droit & Affaires (AD&A)) Paris, 17th Ed. 2020. Available on LexisNexis and Lexis360 (Fr)., Available at SSRN: https://ssrn.com/abstract=3730264

Forrest G. Alogna

Darrois Villey Maillot Brochier ( email )

69 avenue Victor Hugo
Paris, 75016
France
+33 1 45 02 19 19 (Phone)
+33 1 45 02 49 59 (Fax)

Hadrien Bourrellis

Darrois Villey Maillot Brochier ( email )

69 avenue Victor Hugo
Paris, 75016
France

Bertrand Cardi

Darrois Villey Maillot Brochier ( email )

69 avenue Victor Hugo
Paris, 75016
France

Matthew T. Carpenter

Wachtell, Lipton, Rosen & Katz ( email )

51 West 52nd Street
New York, NY 10019
United States
2124031000 (Phone)

HOME PAGE: http://https://www.wlrk.com/

Adam O. Emmerich (Contact Author)

Wachtell, Lipton, Rosen & Katz ( email )

51 West 52nd Street
New York, NY 10019
United States
(212) 403-1234 (Phone)
(212) 403-2234 (Fax)

Theodore N. Mirvis

Wachtell, Lipton, Rosen & Katz ( email )

51 West 52nd Street
New York, NY 10019
United States

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