Essay by Mark J. Loewenstein
This Essay considers the stakeholder debate in the context of the German and Japanese legal systems. Although, nominally, corporations in those countries must operate in the interests of shareholders, in fact nonshareholder constituencies have considerable influence on corporate decision makers. Of equal importance, weak securities markets and ineffective or nonexistent legal protections for shareholders are also important factors in strengthening the position of nonshareholder constituencies and freeing directors to consider their interests. Thus, the stakeholder debate is more of an issue in the United States and Britain, where more shareholder-centric models flourish.
About the Author
Mark J. Loewenstein. Professor of Law and Associate Dean for Research, University of Colorado School of Law.
Citation
76 Tul. L. Rev. 1673 (2002)