Divided Corporate Power Structures

Yet another reform to publicly traded corporations could be the addition of a constitution and judicial function to the company (the Board of Directors already provides a legislative function, and the CEO is obviously an executive function). A constitution could define the goals and purposes of the company, and how it is governed. This could give investors, customers and the public a binding statement of the practices of the company. A constitution could have an effect on whether customers wish to do business with the company, or if members of the public wish to become investors. It could help governments decide whether they wish to accommodate the company, and what accommodations may be made.

An internal judiciary could help resolve disputes within the company, and help determine who is acting in the interests of the company. Often, legal counsel serve as advocates for the company, but have difficulty determining who is the company, and what are the best interests of the company. The judiciary need not be as formal as federal and state courts, and may even be shared among companies. It should be fair, impartial, and efficient.

Leave a Reply

Your email address will not be published. Required fields are marked *