Re-theorising the Law on Corporate Governance for Modern Public Listed Companies in their Multi-investors Context: Existing Lacks and Development Needs

Md. Omar Faruque Munshi

Abstract

Modern public listed companies involve the multivariate interests of different type investors. The shareholders in them are diverse in respect to their interest motivation upon investment and attachment to the business of company. But the existing legal framework of companies provides only a ‘general accountability and participation scheme’ to that multivariate interests which does not properly fit to the context of modern public listed companies. This paper thus argues that, the ongoing legal reformations that advanced at the post corporate collapse events of 1990—2008 and found a shape of international pattern in the present globalised economy, for not reflecting that said diversified investor context of modern companies, also fall short to be effective one. This article probes into the cause for such lacks into the existing legal framework, the dimension of effect in the treatment of modern companies caused upon that lack, necessity for theoretical revise in the existing framework, and proposal thereupon. In formulating a guideline, this paper analyses the definitional changes in respective issues of modern companies, reformation needs, inherited fault-line in theoretical development, resultant effects, areas of non-conforming the rationality under it, and hence what ought to be done.

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