Corporate law crisis: Shareholder primacy challenged, nonshareholder interests at stake.
There is a crisis in corporate law regarding uncertainty over its normative foundations. The traditional belief has been that corporate law should focus on maximizing shareholder wealth, but this has led to issues with managerial accountability. Despite efforts to increase accountability, the separation between ownership and control remains a challenge. The ongoing debate in corporate law revolves around finding a balance between shareholder interests and the interests of other stakeholders like employees, creditors, and communities.
