New criterion limits shareholder power to prevent corporate authority depletion.
The article discusses the balance between shareholder power and board autonomy in public companies. It suggests that shareholder power should be limited to matters where directors have a conflict of interest. This approach is seen as economically efficient and aligns with corporate law systems in Europe and the United States. The article argues that problems like shareholder passivity and short-termism do not require further reduction of shareholder power beyond this limitation.