5-reflectionality of anisotropic orthogonal groups over by Knuppel F.

By Knuppel F.

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123 Ibid. , 278±9. , 278. Bottomley, `Contractualism', 291. However, Bottomley makes the telling point that adopting only one framework to the exclusion of all others is less than helpful and that the political perspective should be considered as complementary to rather than a substitute for legal and political analysis, 292. See on this D. Campbell, `Why Regulate the Modern Corporation? The Failure of ``Market Failure''' in J. McCahery, S. Picciotto and C. ), Corporate Control and Accountability (Clarendon, Oxford, 1993), 103.

56 The reluctance to accept a signi®cant state role is thus a product of the contract/group realist theories which reject state power as a source of legitimation for organisations. Linked with the conception that the state's role is solely an `enabling' one rather than as a controlling power, it is anathema to suggest that the corporation should be used in any way as a form of social engineering. The enabling viewpoint was well put by Professor Ballantine, who drafted new legislation for California in the 1930s.

We have seen that legal contractualism struggles to explain the failure to enforce the contract in the articles and the regulation of the power of majorities over minorities. Economic contractualism has an exactly similar problem. It relies on an explanation of incomplete contracts. '75 Neither accepts the legitimacy of state regulation of power: `The political approach to corporate governance accords with . . '76 In fact the implied term or incomplete contracts theory could bene®t from the insights of Cooter, who argues that all involved in the company internalise not only the organisational norms of the company but also society's norms.

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