With Great Power Comes Great Responsibility: Ideal and Real Types of Shareholders
In: Hanne S. Birkmose (ed.) Shareholders’ Duties, Kluwer Law International, 2017, pp. 69-88
26 Pages Posted: 25 Aug 2017
There are 2 versions of this paper
With Great Power Comes Great Responsibility: Ideal and Real Types of Shareholders
With Great Power Comes Great Responsibility: Ideal and Real Types of Shareholders
Date Written: February 22, 2017
Abstract
This paper explains the ideal types of shareholder as ‘owner’, ‘parliamentarian’ and ‘investor’ and the real types of short-term dispersed and long-term concentrated shareholders. Subsequently, it discusses how those models can be helpful for the conceptual understanding of the current law and the policy debate about future shareholder rights and duties. It is suggested that the ‘empowered shareholder’ can be a guiding objective. However, with greater power also comes greater responsibility: thus, as the other side of the coin, shareholder duties can also be justified.
Keywords: shareholder rights, shareholders’ duties, company law, corporate governance, short-termism, responsible shareholders
JEL Classification: G34, K22, M14, O16
Suggested Citation: Suggested Citation