Keay, A (2019) Having regard for stakeholders in practising enlightened shareholder value. Oxford University Commonwealth Law Journal, 19 (1). pp. 118-138. ISSN 1472-9342
Abstract
Section 172(1) of the Companies Act 2006 introduced the principle of enlightened shareholder value (ESV) to UK law. The provision imposes a duty on directors to act in good faith, in a manner that they consider will promote the success of the company for the benefit of shareholders. The subsection also requires directors to have regard to certain factors when doing this. This is the enlightened aspect of ESV, as these factors encompass interests of different stakeholders, such as employees and customers. Uncertainty prevails over several elements of s 172(1), and this paper addresses this uncertainty over the directors’ obligation to have regard to these factors. It examines the factors in the provision and what it means for directors to have regard to them. It also explores what directors are to do when their actions will lead to a conflict between different factors.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2019 Faculty of Law, Oxford University. This is an author produced version of a paper published in Oxford University Commonwealth Law Journal. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Enlightened shareholder value; directors; stakeholders |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Education, Social Sciences and Law (Leeds) > School of Law (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 25 Mar 2019 12:47 |
Last Modified: | 18 Nov 2020 01:38 |
Status: | Published |
Publisher: | Taylor & Francis |
Identification Number: | 10.1080/14729342.2019.1619238 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:144062 |