Download This PaperPurpose-Based Governance: A New Paradigm
(2020) 43(3) University of New South Wales Law Journal (Advance)
24 Pages Posted: 5 Oct 2020 Last revised: 27 Oct 2020
Date Written: July 31, 2020
Abstract
The permissibility of corporations pursuing purposes other than profit has been the subject of debate for a number of years. This debate has intensified recently with proposals to allow or mandate the adoption of purposes by corporations. At the same time, purpose is central to governance in the charitable sphere. This article proposes a model of 'purpose-based governance', which offers significant potential advantages in both the charitable and for-profit spheres, as well as forming the basis of a unifying governance paradigm.
Keywords: governance, directors' duties, purpose, nonprofit, company law, charities, stakeholders
JEL Classification: K22, K10
Suggested Citation: Suggested Citation