Our specialties vary from establishing corporations and issuing inventory to the personal placement of securities and the sale of companies. There are other types of ownership that play an vital role in contemporary economies, and other our bodies of organizational regulation—together with different bodies of company legislation—which might be specifically designed to facilitate the formation of those different varieties of companies.
The varied forms of flexibility in company legislation on which we have now thus far concentrated—the selection of specifically drafted charter provisions versus default provisions, the selection of one default rule in a given statute versus one other, and the selection of 1 statutory kind versus one other—can all be offered inside any given jurisdiction.
As before, however, although related agency problems arise in similar contexts across all forms of jointly owned enterprise, the response of corporate legislation turns partially on the distinctive authorized options that characterize the corporate type.
Consequently, the company—and, particularly, its shareholders, as the agency’s residual claimants 88 and risk-bearers—have a direct pecuniary interest in ensuring that corporate transactions are beneficial, not simply to the shareholders, however to all events who deal with the firm.… Read More