Nouvelles diverses

normes de droit Nouvelles diverses

The Separation of Corporate Law and Social Welfare

William W. Bratton publie un bel article intitulé « The Separation of Corporate Law and Social Welfare » (4 avril 2017). Dans cet hommage aux travaux notamment de David Million, l’auteur y démontre que le droit des sociétés par actions  a adopté une approche de marché rejetant en marge l’idée qu’il avait pour fonction de protéger la société dans son ensemble des ravages du marché libre.

 

It is often said today that, as a matter of economics, shareholder value enhancement proxies as social welfare enhancement.  But the essay shows the association to be false.  It is also said that shareholding has been democratized, aligning the shareholder interest with that of society as a whole.  But this proposition also is false.  Although more people have interests in shares, the shareholder interest retains substantially the same upper bracket profile that characterized it at the end of World War II.

Corporate law, thus separated from social welfare, today provides a framework well-suited to attainment of shareholder objectives, which in fact have been realized for the most part. If the practice continues to evolve in this mode, the field of corporate law can be expected to fall away from public policy margin and evolve as a narrow private law domain.

 

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Ivan Tchotourian