Book contents
- Reconstructing the Corporation
- Reconstructing the Corporation
- Copyright page
- Dedication
- Contents
- Preface
- Acknowledgments
- 1 Introduction
- 2 Preference Aggregation in Political Institutions
- 3 Preference Aggregation in Corporations
- 4 The Corporation as Contract
- 5 Shareholder Homogeneity
- 6 The Argument from the Residual
- 7 The Argument from Arrow’s Theorem
- 8 The Shareholder Franchise and Board Primacy
- 9 A Firm-Based Approach to Corporate Voting Rights
- 10 Democratic Participation and Shared Governance
- 11 The German Codetermination Experience
- 12 Conclusion
- Notes
- Index
12 - Conclusion
Published online by Cambridge University Press: 18 February 2021
- Reconstructing the Corporation
- Reconstructing the Corporation
- Copyright page
- Dedication
- Contents
- Preface
- Acknowledgments
- 1 Introduction
- 2 Preference Aggregation in Political Institutions
- 3 Preference Aggregation in Corporations
- 4 The Corporation as Contract
- 5 Shareholder Homogeneity
- 6 The Argument from the Residual
- 7 The Argument from Arrow’s Theorem
- 8 The Shareholder Franchise and Board Primacy
- 9 A Firm-Based Approach to Corporate Voting Rights
- 10 Democratic Participation and Shared Governance
- 11 The German Codetermination Experience
- 12 Conclusion
- Notes
- Index
Summary
In this concluding chapter, we note some of the societal problems associated with corporations, such as income inequality, and explore the relationship between those problems and the fact that shareholders have ultimate control of corporate decision-making. We then catalog the ways in which the theoretical underpinnings of this arrangement – shareholder primacy – appear to be in decline and the accompanying law and economics arguments in favor of the exclusive shareholder franchise have fallen apart. The chapter, and the book, conclude with some thoughts about how incorporating employees into firm governance is the best path forward.
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- Reconstructing the CorporationFrom Shareholder Primacy to Shared Governance, pp. 184 - 188Publisher: Cambridge University PressPrint publication year: 2021