Crisis and transition in corporate governance paradigms: The role of the Chancery Court of Delaware

Law and Society Review

Volumn 31, Issue 4, 1997, Pages 713-761

  Sullivan, Daniel P ^a   Conlon, Donald E ^b  

^a UNIVERSITY OF DELAWARE   (United States)

^b NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0031373831     PISSN: 00239216     EISSN: None     Source Type: Journal    
DOI: 10.2307/3053985     Document Type: Article

References (113)

1. Alchian, Armen A., & Harold Demsetz (1972) "The Property Rights Paradigm," 33 J. of Economic History 16-27.
2. Allen, William T. (1990) "Competing Conceptions of the Corporation in American Law," Rocco Tresolini Lecture in Law, Lehigh University, 29 Oct. (reprint on file with Delaware J. of Corporate Law).
3. _ (1993) "Contracts and Communities in Corporation Law," 50 Washington & Lee Law Rev. 1395-1407.
4. _ (1995) "The Evolution of Corporate Boards," Corporate Board, p. 1 (July-August).
5. Alva, Curtis (1990) "Delaware and the Market for Corporate Charters: History and Agency," 15 Delaware J. of Corporate Law 885-919.
6. Astley, W. Graham, & Andrew H. Van de Ven (1983) "Central Perspectives and Debates in Organization Theory," 28 Administrative Science, Q. 245-73.
7. Ballam, Deborah A. (1993) "The Evolution of the Government-Business Relationship in the United States: Colonial Times to Present," 31 American Business Law J. 553-640.
8. Berger, Peter L., & Thomas Luckman (1966) The Social Construction of Reality. New York: Doubleday Anchor.
9. Berle, A. A., Jr. (1931) "Corporate Powers as Powers in Trust," 44 Harvard Law Rev. 1049-74.
10. _ (1932) "For Whom Corporate Managers Are Trustees: A Note," 45 Harvard Law Rev. 1365-72.
11. Berle, A. A., Jr., & Gardiner C. Means (1932) The Modern Corporation and Private Property. New York: Macmillan.
12. Bishop, Matthew (1994) "Watching the Boss: A Survey of Corporate Governance," Economist, pp. 3-5 (29 Jan.).
13. Black, Bernard (1994) "Institutional Investors and Corporation Governance: The Case for Institutional Voice," 6 J. of Applied Corporate Finance 19-32.
14. Block, Dennis J., Stephen A. Radin, & Michael J. Maimone (1992) "Chancellor Allen, the Business Judgment Rule, and the Shareholders' Right to Decide," 17 Delaware J. of Corporate Law 785-842.
15. Bok, Derek C. (1993) The Cost of Talent. New York: Free Press.
16. Bratton, William W. (1989) "The New Economic Theory of the Firm: Critical Perspectives from History," 41 Stanford Law Rev. 1471-1527.
17. _ (1992) "The Economic Structure of the Post-Contractual Corporation," 87 Northwestern Univ. Law Rev. 180-215.
18. Burrough, Bryan, & James Helyar (1990) Barbarians at the Gate: The Fall of RJR Nabisco. New York: Harper & Row.
19. Cannon, T. (1966) Corporate Responsibility. London: Pittman.
20. Chandler, Alfred DuPont (1977) The Visible Hand: The Managerial Revolution in American Business. Cambridge: Harvard Univ. Press, Belknap Press.
21. Clark, Jeffrey J. (1995) "Compaq Computer Corporation, v. Horton: A Straight-forward, Clarifying, Statutory Interpretation of Section 220(b) and (Chancery)," 20 Delaware J. of Corporate Law 622-34.
22. Clark, Robert (1986) Corporate Law. Boston: Little, Brown.
23. Coase, R. H. (1937) "The Nature of the Firm," 4 Economica 380-405.
24. Coffee, John C. (1984) "Regulating the Market for Corporate Control: A Critical Assessment of the Tender Offer's Role in Corporate Governance," 84 Columbia Law Rev. 1145-1296.
25. _ (1991) "Liquidity versus Control," 91 Columbia Law Rev. 1277-1386.
26. Davis, Gerald F., & Tracy A. Thompson (1994) "A Social Movement Perspective on Corporate Control," 39 Administrative Science Q. 141-71.
27. DiMaggio, Paul (1988) "Interest and Agency in Institutional Theory," in L. G. Zucker, ed., Institutional Patterns and Organizations: Culture and Environment. Cambridge, MA: Ballinger.
28. Distefano, Joseph, & Stephen Chrzanowski (1996) "Delaware Lets Corporations Write Their Own Laws," News J. (Gannett), p. A1 (20 March).
29. Dobrzynski, Judith H. (1994) "An Inside Look at CalPERS' Boardroom Report Card," Business Week, p. 196 (17 Oct.).
30. Dodd, E. Merrick, Jr. (1932) "For Whom Are Corporate Managers Trustees?" 45 Harvard Law Rev. 1145-63.
31. Donaldson, Thomas, & Lee E Preston (1995) "The Stakeholder Theory of the Corporation: Concepts, Evidence and Implications," 20 Academy of Management Rev. 65-92.
32. Dooley, Michael P. (1992) "Two Models of Corporate Governance: Analysis of the American Law Institute's Principles of Corporate Governance," 47 Business Lawyer 461-527.
33. Dooley, Michael P., & Norman Veasey (1989) "The Role of the Board in Derivative Litigation: Delaware Law and the Current ALI Proposals Compared," 44 Business Lawyer 503-42.
34. Douglas, William O. (1940) "Democracy and Finance," in J. Allen, ed., The Addresses and Public Statements of William O. Douglas as Member and Chairman of the Securities and Exchange Commission. New Haven, CT: Yale Univ.
35. Drexler, David, Lewis Black, & A. Gilchrist Sparks (1995) Delaware Corporation Law and Practice, Release No. 7. New York: Matthew Bender.
36. Durkheim, Emile (1949 [1893]) The Division of Labor in Society. Glencoe, IL: Free Press.
37. Easterbrook, Frank H., & Daniel R. Fischel (1991) The Economic Structure of Corporate Law. Cambridge: Harvard Univ. Press.
38. Economist, The (1993a) "Return of the Active Shareholder," Economist, p. 18 (30 Jan.).
39. _ (1993b) "A Fund in Wolfs Clothing," Economist, p. 68 (30 Jan.).
40. _ (1993c) "Of Paramount Importance," Economist, p. 60 (18 Dec.).
41. _ (1995) "Frisky Shareholder," Economist, p. 87 (29 April).
42. Felsenthal, Edward (1995) "Liability of Directors," Wall Street J., p. B4 (7 July).
43. Fink, Steven J. (1995) "The Rebirth of the Tender Offer? Paramount Communications, Inc. v. QVC Network, Inc.," 20 Delaware J. of Corporate Law 133-81.
44. Fletcher, William M. (1987) Fletcher's Cyclopedia of the Law of Private Corporations. Perm. ed. rev. Deerfield, IL: Callaghan & Co.
45. Fligstein, Neil, & Robert Freeland (1995) "Theoretical and Comparative Perspective on Corporate Organization," 21 Annual Rev. of Sociology 21-44.
46. Friedman, Lawrence M. (1985) A History of American Law. New York: Simon & Schuster.
47. Gilson, Ronald, & Reinier Kraakman (1989) "Delaware's Intermediate Standard for Defensive Tactics: Is There Substance for Proportionality Review?" 44 Business Law 247-74.
48. _ (1991) "Reinventing the Outside Director: An Agenda for Institutional Investors," 43 Stanford Law Rev. 863-906.
49. Gordon, Charles (1991) "Government Rationality: An Introduction," in G. Burchell et al., eds., The Foucault Effect. London: Harvester.
50. Grundfest, Joseph A. (1990) "Subordination of American Capital," 27 J. of Financial Economics 89-114.
51. _ (1993) "Just Vote No: A Minimalist Strategy for Dealing with Barbarians inside the Gates," 45 Stanford Law Rev. 857-937.
52. Gruson, Lindsey (1986) "Tiny Delaware's Corporate Clout: A Little Known but Powerful Bench Tells Business How to Behave," New York Times, p. A-6F, sec. 3 (1 June).
53. Hall, Kermit L. (1989) The Magic Mirror: Law in American History. New York: Oxford Univ. Press.
54. Hawley, James, & Andrew Williams (1996) Corporate Governance in the United States: The Rise of Fiduciary Capitalism. Brussels: Organization for Economic Cooperation and Development, 31 Jan.
55. Henriques, Diana B. (1995a) "Cinerama v. Technicolor: A Suit That Has Wall Street's Attention," New York Times, p. D-8 (23 May).
56. _ (1995b) "Top Business Court under Fire," New York Times, pp. D1-D2 (23 May).
57. Hirsch, Paul M. (1986) "From Ambushes to Golden Parachutes: Corporate Takeovers as an Instance of Cultural Framing and Institutional integration," 91 American J. of Sociology 800-837.
58. Horwitz, Morton J. (1985) "Santa Clara Revisited: The Development of Corporate Theory," 88 West Virginia Law Rev, 173-224.
59. Hovenkamp, Herbert (1991) Enterprise and American Law, 1836-1937. Cambridge: Harvard Univ. Press.
60. Hughes, Jonathan R. T. (1991) The Governmental Habit Redux: Economic Controls from Colonial Times to the Present. Princeton, NJ: Princeton Univ. Press.
61. Jackson, Norman, & Pippa Carter (1995) "Organizational Chiaroscuro: Throwing Light on the Concept of Corporate Governance," 48 Human Relations 875-90.
62. Jensen, Michael C. (1993) "Presidential Address: The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems," 48 J. of Finance 831-80.
63. Jensen, Michael C., & William H. Meckling (1976) "Theory of the Firm: Managerial Behavior, Agency Costs, and Capital Structure," 3 J. of Financial Economics 305-60.
64. Johnson, Jonathan, Catherine Daily, & Alan Ellstrand (1996) "Boards of Directors: A Review and Research Agenda," 22 J. of Management 409-39.
65. Klein, Michael R., et al. (1990) "Skewered Shareholders: Roundtable on the Time Warner Deal," Directors & Boards, pp. 30-37 (Winter).
66. Knight, Jack, & Lee Epstein (1996) "On the Struggle for Judicial Supremacy," 30 Law & Society Rev. 87-120.
67. Labaton, Stephen (1989) "Profile: Judge William T. Allen: Delaware Chancery Court," Los Angles Daily J., p. A-1 (7 July).
68. Lerner, Jonathan (1990) "Did the Time Decision Torpedo the Hostile Bid?" Mergers and Acquisitions, p. 41 (Jan.-Feb.).
69. Lipton, Martin, & Steven A. Rosenblum (1991) "A New System of Corporate Governance: The Quinquennial Election of Directors," 58 Univ. of Chicago Law Rev. 187-253.
70. Manning, Bayless (1962) "The Shareholder's Appraisal Remedy: An Essay for Frank Coker," 72 Yale Law J. 223-65.
71. Manne, Henry G. (1965) "Mergers and the Market for Corporate Control," 73 J. of Political Economy 110-20.
72. Massey, Stephen (1992) "Chancellor Allen's Jurisprudence and the Theory of Corporate Law," 17 Delaware J. of Corporate Law 683-783.
73. Mergers & Acquisitions (1992) "Endangered Species of the M&A," Market. Mergers & Acquisitions, pp. 25-26.
74. Millon, David (1990) "Theories of the Corporation," 1990 Duke Law J. 201-62.
75. _ (1993) "Communitarians, Contractarians, and the Crisis in Corporate Law" (Symposium: New Directions in Corporate Law), 50 Washington & Lee Law Rev. 1373-93.
76. Millstein, Ira (1993) "Who's Watching the Watchers?" 30 Across the Board 23-28.
77. Monks, Robert A. G., & Nell Minow (1991) Power and Accountability. New York: Harper Business. (Excerpted http://www.wp.com/corpgov/cgbibiography.html.)
78. _ (1996) Watching the Watchers: Corporate Governance in the 21st Century. New York: Blackwell Publishers. (Excerpted http://www.wp.com/corpgov/ cgbibiography.html.)
79. Nelson, Ralph L. (1959) Merger Movements in American Industry, 1895-1956. Princeton, NJ: Princeton Univ. Press.
80. New York Times (1877) "Distrust of Corporate Management," New York Times, 4 (2 Feb.).
81. _ (1995) "CalPERS Will Oppose Nominees for Philip Morris Board," New York Times, p. D2 (14 April).
82. North, Douglass C. (1990) Institutions, Institutional Change, and Economic Performance. New York: Cambridge Univ. Press.
83. O'Barr, William M., John M. Conley, & Carolyn Kay Brancato (1992) Fortune and Folly: The Wealth and Power of Institutional Investors. Homewood, IL: Richard D. Irwin, Inc.
84. Orts, Eric W. (1992) "Beyond Shareholders: Interpreting Corporate Constituency Statutes," 61 George Washington Law Rev. 14-135.
85. Palmer, Ian, & Richard Dunford (1996) "Conflicting Uses of Metaphors: Reconceptualizing Their Use in the Field of Organizational Change," 21 Academy of Management Rev. 691-718.
86. Pound, John (1992) "Beyond Takeovers: Politics Comes to Corporate Control," Harvard Business Rev., pp. 83-92 (March-April).
87. _ (1993) "The Rise of the Political Model of Corporate Governance and Corporate Control," 68 New York Univ. Law Rev. 1003-71.
88. _ (1995) "The Promise of the Governed Corporation," Harvard Business Rev., pp. 89-99 (March-April).
89. Quillen, W. T., & M. Hanrahan (1992) A Short History of the Delaware Court of Chancery. In the Court of Chancery of the State of Delaware, 1792-1992. Wilmington: Historical Society for the Court of Chancery of the State of Delaware.
90. Rao, Ramesh K. S., David Simon Sokolow, & Derek White (1996) "Fiduciary Duty a la Lyonnais: An Economic Perspective on Corporate Governance in a Financially-Distressed Firm," 22 J. of Corporation Law 53-78.
91. Roe, Mark (1991) "A Political Theory of American Corporate Finance," 91 Columbia Law Rev. 10-67.
92. _ (1994) Strong Managers, Weak Owners: The Political Roots of American Corporate Finance. Princeton, NJ: Princeton Univ. Press.
93. Roll, Richard (1986) "The Hubris Hypothesis of Corporate Takeovers," 59 J. of Business 197-216.
94. Romano, Roberta (1987) "The State Competition Debate in Corporate Law," 8 Cardozo Law Rev. 709-57.
95. _ (1993) "Public Pension Fund Activism in Corporate Governance Reconsidered," 93 Columbia Law Rev. 795-853.
96. Scott, W. Richard (1995) Institutions and Organizations: Structural Complexity and Individualism. Thousands Oaks, CA: Sage Publications.
97. Scott, W. Richard, & John W. Meyer (1994) Institutional Environments and Organizations. Thousands Oaks, CA: Sage Publications.
98. Schmitt, Richard B. (1993) "Legal Beat: Court Holds Directors to Higher Legal Standard," Wall Street J. p. B6:1 (1 Nov.).
99. Shapiro, Irving (1988) Report of the Committee on the Court of Chancery. Wilmington: State of Delaware (21 Dec.).
100. Silverstein, Ken (1994) "Pension Funds Increase Presence in Corporate Boardrooms," Pension World, pp. 4-5 (May).
101. Smith, Michael (1996) "Shareholder Activism by Institutional Investors: Evidence from CalPERS," 50 J. of Finance 227-53.
102. Stilson, Ann E. Conaway (1995) "Reexamining the Fiduciary Paradigm at Corporate Insolvency and Dissolution: Defining Directors' Duties to Creditors," 20 Delaware J. of Corporate Law 1-122.
103. Sweeny, Paul (1993) "How CalPERS Can Ruin a CEO's Day," 7 Global Finance 34-39 (Feb.).
104. Tamanaha, Brian Z. (1996) "The Internal/External Distinction and the Notion of "Practice" in Legal Theory and Sociological Studies, 30 Law & Society Rev. 163-204.
105. Taylor, B. Ellen (1996) "New and Unjustified Restrictions on Delaware Directors' Authority," 21 Delaware J. of Corporate Law 837-94.
106. Tinker, T. (1986) "Metaphor or Reification: Are Radical Humanists Really Libertarian Anarchists?" 23 J. of Management Studies 363-84.
107. Useem, Michael (1996) Investor Capitalism: How Money Managers are Changing the Face of Corporate America. New York: Basic Books.
108. Van der Weide, Mark E. (1996) "Against Fiduciary Duties to Corporate Stakeholders," 21 Delaware J. of Corporate Law 27-86.
109. Werkheiser, Gregory W. (1995) "Delaware's New Mandate in Class Action Settlements: Expanding the Scope and Intensity of Settlement Review," 20 Delaware J. of Corporate Law 496-534.
110. _ (1996) "Defending the Corporate Bastion: Proportionality and the Treatment of Draconian Defenses from Unocal to Unitrin," 21 Delaware J. of Corporate Law 103-32.
111. Wilburn, Elizabeth A. (1995) "Beyond Aronson: Recent Delaware Cases on Demand Futility," 20 Delaware J. of Corporate Law 535-63.
112. Williams, Mary (1984) "Delaware's Sedate Chancery Court Is a Major Corporate Battleground," Wall Street J., p. 34 (10 May).
113. Williamson, Oliver E. (1979) "Transaction-Cost Economics: The Governance of Contractual Relations," 22 J. of Law & Economics 233-61.