Corporate purpose with a look on COVID-19 pandemic

Author:

Radović Vuk

Abstract

What is the purpose of companies? Is that purpose unique for all companies? Is a company allowed to formulate its own purpose and to make decisions in accordance with that purpose? Is this the area where the lawmaker should intervene, to what extent and in which manner? What role should or could a company have in determining its own purpose? These are some of the questions to which the author is trying to find the answers, taking into consideration a number of theoretical discussions, as well as comparative and domestic legislative movements. Dilemma between the shareholder theory and the stakeholders' theory represents one of the most controversial topics in modern company law. The COVID pandemic has additionally emphasized the basic problems of these theories. Bearing in mind that definite solutions in this area cannot be given, the author analyses relevant Serbian statutory provisions, in order to make certain suggestions for their adequate interpretation.

Publisher

Centre for Evaluation in Education and Science (CEON/CEES)

Reference51 articles.

1. Bainbridge S. M., "Interpreting Nonshareholder Constituency Statutes", Pepperdine Law Review, br. 19(3), 1992;

2. Berle A. A., Jr., "Corporate Powers as Powers in Trust", Harvard Law Journal, br. 44, 1931;

3. Berle A. A. Jr., Means G., The Modern Corporation and Private Property, 1932;

4. Berle A. A. Jr., The 20th Century Capitalist Revolution, New York, 1954;

5. Cheffins B. R., The Public Company Transformed, Oxford University Press, New York, 2019;

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