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By Klaus J. Hopt, Gunther Teubner

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Extra resources for Corporate Governance and Directors' Liabilities: Legal, Economic and Sociological Analyses on Corporate Social Responsibility

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In Britain, internal responsibilities in the corporation, with new patterns of rights between controllers and the minority shareholders, require a framework of overall norms for corporations in society, one which appears to be attainable only by or through Parliament. Yet such issues are barely confronted even in the ragged discussion of "self-regulation" by City institutions. Again British courts suffer perplexity on the question: who controls corporate litigation? As we have seen in touching on the "offensive" use of 29 E.

But that argument is only an indirect way of reasserting the priority of profit. D. The American Debate and its European Counterpart It is precisely at this point that the American debate seems to run into the sand — and the European debate — sparse though its thoughts are by comparison in the area so far considered — opens into fresh, if surprising pastures. The idea of a board which openly accommodates representatives of constituencies other than shareholders tends to be. dismissed by scholars of different viewpoints as based on "economic naivete", "profoundly ignorant", or even inspired by "punitive" interests (Winter, 1978: 52 — 53); or productive of boards that are "towers of Babel" operating by "logrolling", with goals subject to "periodic shifts" based upon "coalition bargaining" (Herman, 1981: 284-285).

How far doctrine should be modified in the face of a "family-type" corporation in respect of corporate opportunities (Sladen v. Rowse, 347 A 2 d 409 (1975)). 27 the business judgment principle, this is of current interest in the United States. In Britain management enjoys its powers to manage not by reason of statute but because in the "contract" constituted by the articles of association the shareholders have "agreed" not to interfere with the exercise of their delegated management powers (Automatic Self-Cleansing Filter Syndicate Co.

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