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Comparative Corporate Governance

Legal Perspectives

Veronique Magnier

Comparative Corporate Governance considers the effects of globalization on corporate governance issues and highlights how, despite these widespread consequences, predictions of legal convergence have not come true. By adopting a comparative legal approach, this book explores the disparity between convergence attempts and the persistence of local models of governance in the US, Europe and Asia.
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Conclusion

Legal Perspectives

Veronique Magnier

Extract

of the book is that although globalization favours comparison and competition between legal systems of corporate governance which may lead to a progressive alignment of legal systems, convergence should not be required per se. Diversity within a legal family increases as jurisdictions move away from their old standard models of corporate governance, but modify innovation to reconcile it with their own legal tradition.

The second main conclusion is that, for now, a standard model of corporate governance has not emerged in Europe or Asia, even though a trend towards more investor-friendly codes is discernible. Consequently, authors observe a transmission of legal concepts across borders and regulatory outcomes towards a benchmark, but no convergence in a strict sense nor a whole set of rules. Convergence as once conceived by the Chicago School thesis is now obsolete. The key is not to have all models converge towards a single model, but to have each legal system adopt an optimal governance model. This goal tackles the crucial issue of implementation and efficiency of corporate governance systems.

The challenge of enforcement is the third main conclusion of the book, and remains an issue for future cross-border studies. Further work remains to be done to determine whether it has a plain legal effect. Corporate governance is a discipline in full expansion, difficult to apprehend in its entirety. If its legitimacy is at stake, it is no more a bipolar debate.

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