For those interested in a cutting edge discussion by leading corporate law scholars, you will want to follow the online debate this week between Prof. Gordon Smith and Prof. Steve Bainbridge on the blog called Pointof Law, regarding the issue of relative control of shareholders v. directors. Here is a concluding paragraph from the first post: "The brevity required by this forum does not allow for a complete explication of the case for increased shareholder participation in corporate governance, but I hope that this post will serve as a useful starting point for our debate. As noted above, the central issue of contemporary corporate governance debates is whether the current regime of "director primacy" should be modified. Arrow identified the tension between authority and responsibility, but this is only a starting point, not a conclusion. Acknowledging that tension does not tell us where to draw the lines." Here is the link to the site where the debate will take place: PointofLaw.com | PointOfLaw Featured Discussion.
STILL MORE: Prof. Lynn Stout joins the debate with a paper addressing the dynamics between shareholders and directors. Prof. Bainbridge posts about it with a link to her article. Here is the hyperlink:www.professorbainbridge.com/2006/09/stout_on_shareh.html