Segrestin, B., Johnston, A. orcid.org/0000-0003-0824-7844 and Hatchuel, A. (2019) The separation of directors and managers: a historical examination of the status of managers. Journal of Management History, 25 (2). pp. 141-164. ISSN 1751-1348
Abstract
Purpose The purpose of this paper is to contrast the historical rise of the managerial function and its reception in law. It thus contributes to the debates on the separation of ownership and control, by showing that managers were never recognized in law. As a result, the managerial function was not protected in law.
Design/methodology/approach This paper brings together management history and the history of UK company law to study the emergence of management in the early twentieth century and the law’s response. The authors bring new historical evidence to bear on the company law reforms of the second half of the twentieth century and, in particular, on the changes inspired by the Cohen Committee report of 1945.
Findings Scientific progress and innovation were important rationales for the emergence of managerial authority. They implied new economic models, new competencies and wider social responsibilities. The analysis of this paper shows that these rationales have been overlooked by company law. The lack of conceptualization of the management in law allowed reforms after 1945 that gave shareholders greater influence over corporate strategy, reducing managerial discretion and the scope for innovation.
Research limitations/implications This paper focuses on the UK. Further research is needed to confirm whether other countries followed a similar path, both in terms of the emergence of management and in terms of the law’s approach.
Originality/value This paper is the first, to the authors’ knowledge, to examine the law’s historical approach to management. It calls for a reappraisal of the status of managers and the way corporate governance organizes the separation of ownership and control.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2019 Emerald Publishing Limited. This is an author produced version of a paper subsequently published in Journal of Management History. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Innovation; Corporate governance; Directors; Management history; Company law; Managers |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > School of Law (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 11 Jan 2019 11:02 |
Last Modified: | 24 Nov 2021 11:56 |
Status: | Published |
Publisher: | Emerald |
Refereed: | Yes |
Identification Number: | 10.1108/JMH-11-2018-0060 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:140207 |
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Filename: Segrestin Johnston Hatchuel JMH accepted 17122018.pdf
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