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Private Ordering with Shareholder Bylaws

64 Pages Posted: 29 Mar 2011 Last revised: 10 Jun 2015

D. Gordon Smith

Brigham Young University - J. Reuben Clark Law School

Matthew G. Wright

Linklaters

Marcus Kai Hintze

affiliation not provided to SSRN

Date Written: March 26, 2011

Abstract

In this Article, we propose legal reforms to empower shareholders in public corporations. Most shareholders participate in corporate governance in three ways: they vote, they sell, and they sue. We would expand the menu for shareholders in public corporations by enabling them to contract using shareholder bylaws. We contend that private ordering will improve shareholder monitoring of managers and create laboratories of corporate governance that benefit the entire corporate governance system.

Keywords: shareholder empowerment, shareholder bylaws, corporate governance, private ordering, Delaware corporations, Rule 14a-8

JEL Classification: G34, K12, K22, L14, L22

Suggested Citation

Smith, D. Gordon and Wright, Matthew G. and Hintze, Marcus Kai, Private Ordering with Shareholder Bylaws (March 26, 2011). Fordham Law Review, Vol. 80, p. 125, 2011. Available at SSRN: https://ssrn.com/abstract=1797066

D. Gordon Smith (Contact Author)

Brigham Young University - J. Reuben Clark Law School ( email )

422 JRCB
Provo, UT 84602
United States
801.422.3233 (Phone)
801.422.0390 (Fax)

Matthew G. Wright

Linklaters ( email )

United States

Marcus Kai Hintze

affiliation not provided to SSRN

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