Myth of Shareholder Primacy in English Law

Mukwiri, Jonathan

Abstract

This article assesses the validity of the shareholder primacy norm, with particular focus on the pre and post Companies Act 2006 implications of shareholder primacy in English company law. Prior to the Companies Act 2006, much was written about shareholder primacy, which assumed it to be the basis of corporate governance in English law. In testing the validity of that assumption, this article examines the historical application of partnership principles to corporate governance, the case law often called in aid of the shareholder primacy norm, and finds that shareholder primacy remains at odds with the tenet of corporate legal personality in English law. It concludes that the assumption that shareholder primacy was the basis of corporate governance in English law is a myth.

Citation

Mukwiri, J. (2013). Myth of Shareholder Primacy in English Law. European Business Law Review, 24(2), 217-241

• Journal Article Type: Article
• Publication Date: Jan 1, 2013
• Deposit Date: Oct 29, 2012
• Publicly Available Date: Apr 19, 2013
• Journal: European Business Law Review
• Print ISSN: 0959-6941
• Publisher: Kluwer Law International
• Peer Reviewed: Peer Reviewed
• Volume: 24
• Issue: 2
• Pages: 217-241
• Public URL: https://durham-repository.worktribe.com/output/1494493
• Publisher URL: http://www.kluwerlawonline.com/document.php?id=EULR2013011