Corporate governance is increasingly a major policy issue in business regulation and a key element in business strategy and corporate litigation. This course will discuss the major debates in corporate governance, the challenges for designing an optimal system for governing corporations, and the increasingly important role of lawyers in these policy debates. The course will focus on a range of issues. For example, is shareholder activism by hedge funds and other institutional shareholders good for shareholder value, or does it promote short-termism? Do anti-takeover devices entrench managers or promote long-term strategic growth? Are CEOs paid too much, and should their compensation be regulated? Does state competition for corporate charters lead to a race to the top or the bottom? How can for-profit firms be designed to pursue social missions and avoid green-washing? In discussing each of these topics, this course will consider whether corporations are best regulated by the government or market discipline. A main goal of the course is to enable students to review empirical studies that use various quantitative methodologies, and to evaluate the implications of these studies for legal policy and corporate practice. To fulfill the requirements for this course, students will have the option to write short reaction papers or the opportunity to work on a substantial research paper (subject to the approval of the instructor).
Law 210 Business Associations is a pre-requisite. It may be taken concurrently with instructor permission.
|Course Areas of Practice|
Knowledge and understanding of substantive and procedural law