ISBN: 3540253807
TITLE: comparative Corporate Governance
AUTHOR: Mntysaari
TOC: 

1 Introduction 1
2 Comparative Law and Corporate Governance 9
2.1 Introduction 9
2.2 The Comparative Legal Method in General 10
2.3 Comparative Corporate Governance in Particular 15
2.3.1 Introduction 15
2.3.2 The Objectives of Corporate Governance 16
2.3.3 The Choice of a. Social Need 16
2.3.4 The Choice of a Social Need and the Amount of Rules 18
2.3.5 The Choice of a Narrow Social Need 19
2.3.6 Rules an Governance and Rules an Constraints an Governance 21
2.3.7 The Legal Nature of Companies and the Organisation of Firms 22
2.3.8 The Sources and Nature of Rules 34
3 The Law of the European Union 35
3.1 The Legal Basis 35
3.2 The Harmonisation of Corporate Governance Rules 37
3.2.1. The General Approach in the Past 37
3.2.2 Reasons for Harmonisation in the Future 38
3.2.3 The Effect of the Sarbanes-Oxley Act 44
3.2.4 The Present Approach to Harmonisation 47
3.3 Freedom to Choose the Company Form in the EU 53
3.4. The European Company 58
3.4.1 Introduction 58
3.4.2. The Applicable Rules in General 60
3.4.3 Party Autonomy under the SE Regulation 64
3.4.4 The Basic Governance Structure under the SE Regulation 66
3.5 Conclusion 77
4 The United Kingdom 79
4.1 General Remarks 79
4.1.1 Introduction 79
4.1.2 The Most Important Legal Forms of Business Organisation 81
4.1.3 Sources 82
4.1.4 The Extent of Party Autonomy in Rule-making 86
4.2 Basic Governance Structure 93
4.2.1 Introduction 93
4.2.2 General Meeting of Shareholders 94
4.2.3 Board of Directors 95
4.2.4 Managing Director 100
4.2.5 Company Secretary 101
4.2.6 The Location of Management 104
4.3 The Importance of Articles of Association 105
4.3.1 Introduction 105
4.3.2 Parties Bound by the Memorandum and Articles 105
4.3.3 Enforcement by Shareholders 112
4.4 The General Meeting and Internal Management 114
4.4.1 Introduction 114
4.4.2 Division of Powers: General Remarks 114
4.4.3 Procedure of Decision-making 116
4.4.4 The Memorandum and Articles of Association 120
4.4.5 Decisions an Management Matters 122
4.4.6 The Appointment, Remuneration and Removal of Managers 135
4.5 Agreements and Internal Management 143
4.5.1 Introduction 143
4.5.2 Unanimous Consent 143
4.5.3 Shareholders' Agreements 146
4.5.4 Shareholders' Agreements with the Company 149
4.6 Disclosure, Remedies and Management Duties 151
4.6.1 Introduction 151
4.6.2 Disclosure of Information 152
4.6.3 Shareholder Remedies 159
4.6.4 Right to Sue: General Remarks 166
4.6.5 Proceedings Brought by Shareholders for Breach of Duty 169
4.6.6 Other Shareholder Remedies 179
4.6.7 The Duties of Board Members 181
4.6.8 The Duties of Sub-board Managers 191
4.6.9 The Duties of Company Secretary 196
4.6.10 Auditors' Duties 198
4.6.11 Shareholders' Duties 202
4.7 Shareholders and Dealings with Third Parties 202
4.7.1 Introduction 202
4.7.2 Representation of the Company: General Remarks 203
4.7.3 Company Acting through its Board of Directors 204
4.7.4 Company Acting through Other Representatives 206
4.7.5 Shareholders as a Rule-maker 210
4.8 The Governance of Groups in the UK 216
4.8.1 Introduction 216
4.8.2 Legislation an Groups 217
4.8.3 The Effect of the Group Structure an the Scope of Rules 218
4.8.4 The Parent Company as a Rule-maker in the Subsidiary 221
4.8.5 Duties of the Board of the Subsidiary Company 222
4.8.6 Duties of the Board of the Parent Company 224
4.8.7 Duty of Board Members to Supervise Outsourced Activities 225
4.8.8 Duties of Outside Managers 226
4.9 Constraints an the Exercise of Shareholders' Powers 226
4.9.1 Introduction 226
4.9.2 Constraints an Voting 228
4.9.3 Enforcement of the Constitution of the Company 233
4.9.4 Constraints an Other Acts 233
4.9.5 Fraud an the Minority 234
4.9.6 Groups 234
4.9.7 Sanctions Against Shareholders 237
5 Germany 239
5.1 General Remarks 239
5.1.1 Introduction 239
5.1.2 The Most Important Legal Forms of Business Organisation 242
5.1.3 Sources 243
5.1.4 The Extent of Party Autonomy in Rule-making 246
5.2 Basic Governance Structure 250
5.2.1 Introduction 250
5.2.2 The General Meeting 250
5.2.3 The Two-tier System 252
5.2.4 The Management Board 253
5.2.5 The Supervisory Board 261
5.2.6 Prokurist 271
5.2.7 The Location of Management 271
5.3 The Importance of Statutory Rules 272
5.3.1 Introduction 272
5.3.2 Effect an Board Members and the Statutory Auditor 273
5.3.3 Effect an Sub-board Managers and Employees 276
5.3.4 Derogation from the Aktiengesetz 276
5.4 The General Meeting and Internal Management 277
5.4.1 Introduction 277
5.4.2 General Remarks an the Division of Powers 278
5.4.3 Procedure of Decision-making 279
5.4.4 Articles of Association 284
5.4.5 Decisions an Management Matters 287
5.4.6 The Appointment, Removal and Remuneration of Managers 296
5.5 Agreements and Internal Management 305
5.6 Disclosure, Remedies and Management Duttes 306
5.6.1 Introduction 306
5.6.2 The Rights of Shareholders to Disclosure of Information 307
5.6.3 Shareholder Remedies 316
5.6.4 Penal Sanctions 336
5.6.5 The Duttes of Management Bodies 339
5.6.6 The Liability and Management Duties of Sub-board Managers 348
5.6.7 The Liability and Duties of Statutory Auditors 352
5.7 The Role of Individual Shareholders 353
5.8 Shareholders and Dealings with Third Parties 354
5.8.1 Introduction 354
5.8.2 Representation of the Company by its Shareholders 355
5.8.3 Representation of the Company by Other Representatives 355
5.8.4 Shareholders as a Rule-maker 358
5.8.5 Statutory Provisions an the Representation of the Company 360
5.9 The Governance of Groups in Germany 362
5.9.1 Introduction 362
5.9.2 Fiduciary Duties of Group Members 363
5.9.3 The GmbH 364
5.9.4 Co-determination in Groups 365
5.9.5 Konzernrecht 366
5.9.6 Shareholders' Rights to Disclosure of Information in Company Groups 373
5.9.7 Shareholder Remedies in Company Groups 374
5.10 Constraints an the Exercise of Shareholders' Powers 379
5.10.1 Introduction 379
5.10.2 Duty of Loyalty 380
5.10.3 The Right to Contest Resolutions of the General Meeting 380
5.10.4 Capped Voting, Restrictions an the Use of Proxy Votes 384
5.10.5 Liability 385
6 Comparison 389
6.1 General Remarks 389
6.2 Convergence 393
6.3 Fundamental differences 394
6.4 Conflicts between models 395
6.5 Basic Governance Structure 397
6.5.1 Germany 397
6.5.2 The United Kingdom 398
6.5.3 Two-tier Boards and Board Structures 399
6.5.4 The Fundamental Problems of UK Company Law 401
6.5.5 Commission Recommendation an the Role of Directors 404
6.5.6 The SE Company 406
6.6 Shareholders and Internal Management 407
6.6.1 Articles of Association 407
6.6.2 Appointment of Managers 408
6.6.3 Decisions an Management Matturs in General 409
6.6.4 Shareholder Remedies 410
6.6.5 Legal Costs 412
6.6.6 Management Duties 413
6.6.7 Stakeholders' Interests 413
6.6.8 Voting 414
6.7 Proximity and Objectivity in Monitoring 415
6.7.1 Approximation of Laws 416
6.7.2 Germany 416
6.7.3 The United Kingdom 418
6.7.4 Authorities as Objective Monitors 419
6.8 Consensus 419
6.9 Which Monitoring Model is Better? 421
6.10 Constraints an the Exercise of Shareholders' Powers 423
6.11 Groups 423
6.12 Government Policy an Enforcement 426
6.12.1 Private Enforcement 426
6.12.2 Self-enforcement 426
6.12.3 Self-governance of the Business Organisation 427
6.12.4 Public Enforcement 428
References 431
END
