Response to the Study on Directors’ Duties and Sustainable Corporate Governance by Nordic Company Law Scholars

27 Pages Posted: 13 Oct 2020 Last revised: 15 Jan 2021

See all articles by Paul Krüger Andersen

Paul Krüger Andersen

affiliation not provided to SSRN

Andri Bergthorsson

Reykjavik University´s School of Law

Tore Bråthen

affiliation not provided to SSRN

Søren Friis Hansen

Independent

Jesper Lau Hansen

University of Copenhagen - Faculty of Law (FOCOFIMA)

Svante Johansson

Linklaters

Morten Kinander

BI Norwegian Business School

Mårten Knuts

affiliation not provided to SSRN

Erik Lidman

Gothenburg School of Business, Economics and Law; Stockholm Corporate Governance Forum

Troels Michael Lilja

Copenhagen Business School - CBS Law

Niels Skovmand Rasmussen

University of Southern Denmark - Department of Law; London School of Economics - Law Department

Matti J. Sillanpää

University of Turku - Turku School of Economics

Rolf Skog

University of Gothenburg - Department of Law

Daniel Stattin

affiliation not provided to SSRN

Therese Strand

Copenhagen Business School, Center for Corporate Governance

Seppo Villa

affiliation not provided to SSRN

Caspar Rose

Copenhagen Business School

Per Samuelsson

Lund University

Gustaf Sjöberg

Stockholm University

Veikko Vahtera

Tampere University

Erik Werlauff

Aalborg University

Date Written: October 7, 2020

Abstract

The Study on Directors’ Duties and Sustainable Corporate Governance (hereinafter ‘The Study’) was published on 30 July 2020 and is accompanied by a Commission Inception Impact Assessment and a consultation deadline of 8 October 2020. The Assessment adds very little to the Study and this response is consequently made to the Study by a group of Nordic company law scholars.

Resume of Findings
The Study displays a lack of understanding of the nature of legal discourse and presents a biased, unrepresentative and highly politically motivated survey of literature and empirics.

The Study misrepresents fundamental concepts of company law and fails to understand how corporate governance works.

The Study exaggerates the problem of climate change and neglects the many other, equally serious, problems facing both company directors and EU legislators in their obligations to their respective constituencies.

The policy pursued by the Study contravenes both fundamental concepts of ownership rights inherent in European law and the basic policies that underlie the founding treaties of the European Union and its assumptions are equally incompatible with EU secondary legislation on company law and capital markets.

The Study underestimates the many existing measures adopted by EU legislators and their potential to serve as alternatives to its own far-reaching measures in a way that fundamentally would void the principle of subsidiarity and deprive Member States of control with their own economies.

The regulatory options recommended by the Study would seriously harm European business and prevent it from continuing to contribute to the sustainable growth and prosperity that the Union needs to fulfil its overall policies.

On this basis, we find that the Study cannot serve as the basis for contemplating the proposed regulatory initiatives and that any discussion must proceed on a better informed foundation brought about by a free and unbiased discourse.

Keywords: directors' duties, sustainable corporate governance

JEL Classification: K22

Suggested Citation

Andersen, Paul Krüger and Bergthorsson, Andri and Bråthen, Tore and Hansen, Søren Friis and Hansen, Jesper Lau and Johansson, Svante and Kinander, Morten and Knuts, Mårten and Lidman, Erik and Lilja, Troels Michael and Skovmand Rasmussen, Niels and Sillanpää, Matti J. and Skog, Rolf R. and Stattin, Daniel and Strand, Therese and Villa, Seppo and Rose, Caspar and Samuelsson, Per and Sjöberg, Gustaf and Vahtera, Veikko and Werlauff, Erik, Response to the Study on Directors’ Duties and Sustainable Corporate Governance by Nordic Company Law Scholars (October 7, 2020). Nordic & European Company Law Working Paper No. 20-12, University of Copenhagen Faculty of Law Research Paper No. 100, Available at SSRN: https://ssrn.com/abstract=3709762

Paul Krüger Andersen

affiliation not provided to SSRN

Andri Bergthorsson

Reykjavik University´s School of Law ( email )

Ofanleiti 2
Reykjavik, 103
Iceland

HOME PAGE: http://www.ru.is/haskolinn/starfsfolk

Tore Bråthen

affiliation not provided to SSRN

Søren Friis Hansen

Independent ( email )

Jesper Lau Hansen (Contact Author)

University of Copenhagen - Faculty of Law (FOCOFIMA) ( email )

Studiestraede 6
Studiestrade 6
Copenhagen, DK-1455
Denmark

HOME PAGE: http://www.jur.ku.dk

Svante Johansson

Linklaters ( email )

United States

Morten Kinander

BI Norwegian Business School ( email )

Nydalsveien 37
Oslo, 0442
Norway

Mårten Knuts

affiliation not provided to SSRN

Erik Lidman

Gothenburg School of Business, Economics and Law ( email )

Gothenburg
Sweden

Stockholm Corporate Governance Forum ( email )

Stockholm
Sweden

HOME PAGE: http://https://kabstiftelse.se/en/about-the-corporate-governance-forum/

Troels Michael Lilja

Copenhagen Business School - CBS Law ( email )

Porcelaenshave 18B, 1
Frederiksberg 2000
Denmark

Niels Skovmand Rasmussen

University of Southern Denmark - Department of Law ( email )

Denmark

London School of Economics - Law Department ( email )

Houghton Street
London WC2A 2AE, WC2A 2AE
United Kingdom

Matti J. Sillanpää

University of Turku - Turku School of Economics ( email )

Rehtorinpellonkatu 3
TURKU, FI-20500
Finland

Rolf R. Skog

University of Gothenburg - Department of Law ( email )

Viktoriagatan 30
Box 650
Göteborg, 40530
Sweden
+46 31 7866990 (Phone)

HOME PAGE: www.law.gu.se

Daniel Stattin

affiliation not provided to SSRN

Therese Strand

Copenhagen Business School, Center for Corporate Governance ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

Seppo Villa

affiliation not provided to SSRN

Caspar Rose

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

Per Samuelsson

Lund University ( email )

Box 117
Lund, SC Skane S221 00
Sweden

Gustaf Sjöberg

Stockholm University ( email )

Universitetsvägen 10
Stockholm, Stockholm SE-106 91
Sweden

Veikko Vahtera

Tampere University ( email )

Tampere, FIN-33101
Finland

Erik Werlauff

Aalborg University ( email )

Fredrik Bajers Vej 7E
Aalborg, DK-9220
Denmark

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