Enforcement of Actions in Corporate Law by Non-Shareholder Constituencies
Lessons for the Common Law World from South Africa
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Enforcement of Actions in Corporate Law by Non-Shareholder Constituencies: Lessons for the Common Law World from South Africa advocates for a complementary enforcement regime for the current (and proposed) corporate legislative measures in the Anglo-American corporate law. Doing so would empower non-shareholder interests in corporate decision-making. Mongalo argues that corporate legislative initiatives ought to provide for non-shareholder constituencies' considerations in decision-making within corporate entities, and that failure to enforce such frameworks reduces the law to lip service. By ...
Enforcement of Actions in Corporate Law by Non-Shareholder Constituencies: Lessons for the Common Law World from South Africa advocates for a complementary enforcement regime for the current (and proposed) corporate legislative measures in the Anglo-American corporate law. Doing so would empower non-shareholder interests in corporate decision-making. Mongalo argues that corporate legislative initiatives ought to provide for non-shareholder constituencies' considerations in decision-making within corporate entities, and that failure to enforce such frameworks reduces the law to lip service. By offering a comprehensive critique of corporate constituency statutes and benefit corporation statutes in US and the enlightened shareholder value approach in the UK, Mongalo makes the case that a shift from the current enforcement philosophy in Anglo-American jurisdictions-which is based on the preference of those to whom fiduciary duties are currently owed-is necessary and that the Actionable Enlightened Shareholder Value (AESVA), with its origins in South Africa, should be preferred.
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