Shareholders, Stakeholders and the 'Ordoliberalism'
Mathias M. Siems
Durham University - Durham Law School; University of Cambridge - Centre for Business Research
European Business Law Review, Vol. 13, pp. 147-159, 2002 (with postscript 2008)
It is often said that a company should be expected to trouble itself with nothing else than the maximisation of shareholder return. In this article I suggest a three times 'yes, but'-solution: It is feasible for the legislation to consider the interests of non-shareholder stakeholders but not primarily by company law. An inclusion in company law is only useful as far as the specific corporate structure is concerned but this exception is not very extensive. Especially, I do not support a general duty to consider a great number of stakeholders' interests. As far as other areas of law are concerned, the hurdles are less restrictive but economic arguments can justify certain restrictions.
Number of Pages in PDF File: 17
Keywords: Company law, shareholder protection, stakeholder protection, ordoliberalism
JEL Classification: K22, K31Accepted Paper Series
Date posted: November 23, 2005 ; Last revised: June 1, 2008
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