Corporate Law, Codes and Social Norms - Finding the Right Regulatory Combination and Institutional Structure
Journal of Corporate Law Studies, Vol. 2001, No. 2, December 2001
Posted: 4 Mar 2002
UK corporate regulation ranges from detailed rules set out in primary legislation and supported by civil and criminal sanctions, through to non-legally enforceable, but commercially powerful, guidelines or norms developed by market participants. The general review of company law that took place between 1998 and 2001 included a re-examination of the sources of corporate regulation and the institutional framework. Current reform proposals include reorganisation of the sources of regulation and the establishment of a new regulatory infrastructure based on existing institutional arrangements for financial reporting. Whilst the proposals may result in a more coherent institutional framework, this paper suggests that they mark a shift towards greater state control of regulation, and addresses the concern that there may be a loss of advantages commonly associated with market-based regulation. The paper also highlights the significance of the continuing preference for criminal sanctions in shaping reform proposals concerning the sources of corporate regulatory rules.
Keywords: corporate law; law reform
JEL Classification: K22
Suggested Citation: Suggested Citation