The Theory of Corporate Governance


Would employee representation on the board directors provide a greater net benefit to society than the status quo-dominant ideology?

This paper addresses the tension in the law between stockholders, management, and employees. I have fleshed out this discussion through the use of a recent study conducted at the Wharton School of Business which compares the efficiencies in modern co-determination regimes to that of the dominant ideology.

Ultimately, the tension between the dominant view and co-determination can be eased with a more balanced approach by bringing all the parties to the table in a thoughtful, yet realistic manner.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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