|
Constituency Statute
A constituency statute is a term in US corporate law for a rule that requires a board of directors to pay regard to the interests of all corporate stakeholders in their decision making. A constituency statute is intended to give directors of corporations the discretion to balance the interests of stakeholders, rather than have to solely focus on maximizing shareholder value in a way that could damage the long-term sustainability of the enterprise. State laws In 1991, 28 states were recorded as having constituency statutes.C Hansen, 'Other Constituency Statutes: A Search for Perspective' (1991) 46(4) The Business Lawyer 1355, Appendix A for a list of laws. Professor Charles Hansen recorded the following: {{Cquote, ;A. Typical Permissive *1. Arizona Ariz.Rev.Stat.Ann.§ 10-1202(Supp. 1990). *2. Connecticut Conn.Gen.Stat.Ann.§ 33-313 (2018). *3. Florida Fla. Stat.Ann.§ 607.0830(WestSupp. 1991). *4. Georgia Ga. CodeAnn.§ 14-2-202(b)(5)(1989). *5. Hawaii Haw. Rev.Stat.§ 415-35(b)( ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
US Corporate Law
United States corporate law regulates the governance, finance and power of corporations in US law. Every state and territory has its own basic corporate code, while federal law creates minimum standards for trade in company shares and governance rights, found mostly in the Securities Act of 1933 and the Securities and Exchange Act of 1934, as amended by laws like the Sarbanes–Oxley Act of 2002 and the Dodd–Frank Wall Street Reform and Consumer Protection Act. The US Constitution was interpreted by the US Supreme Court to allow corporations to incorporate in the state of their choice, regardless of where their headquarters are. Over the 20th century, most major corporations incorporated under the Delaware General Corporation Law, which offered lower corporate taxes, fewer shareholder rights against directors, and developed a specialized court and legal profession. Nevada has done the same. Twenty-four states follow the Model Business Corporation Act, while New York and Calif ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Board Of Directors
A board of directors (commonly referred simply as the board) is an executive committee that jointly supervises the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit organization, or a government agency. The powers, duties, and responsibilities of a board of directors are determined by government regulations (including the jurisdiction's corporate law) and the organization's own constitution and by-laws. These authorities may specify the number of members of the board, how they are to be chosen, and how often they are to meet. In an organization with voting members, the board is accountable to, and may be subordinate to, the organization's full membership, which usually elect the members of the board. In a stock corporation, non-executive directors are elected by the shareholders, and the board has ultimate responsibility for the management of the corporation. In nations with codetermination (such as Germ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stakeholder (corporate)
In a corporation, a stakeholder is a member of "groups without whose support the organization would cease to exist", as defined in the first usage of the word in a 1963 internal memorandum at the Stanford Research Institute. The theory was later developed and championed by R. Edward Freeman in the 1980s. Since then it has gained wide acceptance in business practice and in theorizing relating to strategic management, corporate governance, business purpose and corporate social responsibility (CSR). The definition of corporate responsibilities through a classification of stakeholders to consider has been criticized as creating a false dichotomy between the "shareholder model" and the "stakeholders model" or a false analogy of the obligations towards shareholders and other interested parties. Types Any action taken by any organization or any group might affect those people who are linked with them in the private sector. For examples these are parents, children, customers, owners, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Accountable Capitalism Act
The Accountable Capitalism Act, 115th Congress (2017–18S. 3348is a proposed federal bill introduced by Senator Elizabeth Warren in August 2018. It would require any company with revenue over $1 billion to obtain a federal corporate charter. For these companies, employees would elect 40% of the board of directors and a 75% vote of shareholders and directors would be required to approve any political spending. The Act contains a "constituency statute" that would give directors a duty of "creating a general public benefit" with regard to a corporation's stakeholders, including shareholders, employees, and the environment, and the interests of the enterprise in the long-term. Reception Political commentator Matthew Yglesias wrote that "Warren's plan starts from the premise that corporations that claim the legal rights of personhood should be legally required to accept the moral obligations of personhood." ''The New York Times'' columnist David Leonhardt called the proposal "t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
