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85 Can. B. Rev. 1 (2006)

handle is hein.journals/canbarev85 and id is 1 raw text is: 










Vol. 85                    July 2006 juillet                No. 1



        CORPORATE LAW AND THE ROLE OF
             CORPORATIONS IN SOCIETY:
 MONISM, PLURALISM, MARKETS AND POLITICS

                            Ian B. Lee*


In light of the Supreme Court's decision in Peoples Department Stores v.
Wise, the author examines the debate in corporate law as to whether
corporate managers should be concerned exclusively with the pursuit of
wealth for the stockholders, or whether they should be thought of as having
a broader mandate. Although the normative debate has been inconclusive
within the corporate law academy, the author argues that it may usefully
be recharacterized as a debate about the respective roles of two modalities
of social decision-making: markets and politics. The advantage of this
redescription is that it brings to the fore considerations that are overlooked
or misconceived in the debate as it is conventionally structured.


A la lumi~re de la dcision rendue par la Cour supreme dans l'arret
Peoples Department Stores c. Wise, l'auteur se penche sur la question de
savoir si, en droit des socitds, le mandat des dirigeants d'entreprise
devrait se limiter i la recherche de profits pour les actionnaires ou si ce
mandat devrait s'&tendre i d'autres objectifs. Bien que le d'dbat normatif
n'ait pas abouti i un consensus sur cette question parmi les universitaires
en droit des socitds, l'auteur soutient qu'il serait utile de repenser le
probl~me en termes des r6les respectifs de deux modalitds de prise de
dcisions sociales, qu'on peut nommer les marchcts et les politiques.
L'avantage d'une telle rdorientation du ddbat est qu'elle met en &vidence
certaines considdrations qui sont souvent occultdes ou mal interprtdes
dans le ddbat tel qu'il est actuellement structural.

    * Faculty of Law, University of Toronto. The author thanks Heidi Libesman and two
anonymous reviewers for their comments.


THE CANADIAN BAR REVIEW

   LA REVUE DU BARREAU
           CANADIEN

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