Document Type
Article
Publication Date
2011
Abstract
Corporate governance scandals inevitably raise concerns about the extent to which corporate directors failed in their responsibility to monitor the corporation and its managers, especially in terms of the latter's’ misdeeds. Corporate governance reforms strive to shore up directors' roles by seeking to ensure that boards have sufficient incentives to engage in effective oversight and to hold the boards more accountable. The current financial crisis has ushered in an era of significant government reform of the financial system and involvement in corporate governance matters. Such involvement has increased board of directors' responsibilities but has not reconciled those responsibilities with board functions and fiduciary law, at least in Delaware. The lack of reconciliation not only represents a missed opportunity to reconsider boards' proper role and function within the modern public corporation, but also may undermine the effectiveness of reforms.
Keywords
Government Governance, Government Regulation, Board Fiduciary Duties, Delaware Corporate Law, Corporate Law, Delaware Law, Board of Directors, Fiduciary Duties, Fiduciary Duty, Financial Crisis, Director Responsibility, Government's Role in Governance, Golden Parachute, Incentive Awards, Clawbacks
Publication Title
Minnesota Law Review
Repository Citation
Fairfax, Lisa, "Government Governance and the Need to Reconcile Government Regulation with Board Fiduciary Duties" (2011). All Faculty Scholarship. 2437.
https://scholarship.law.upenn.edu/faculty_scholarship/2437
Included in
Antitrust and Trade Regulation Commons, Banking and Finance Law Commons, Business Law, Public Responsibility, and Ethics Commons, Business Organizations Law Commons, Industrial Organization Commons
Publication Citation
95 Minn. L. Rev. 1692 (2011).