Company Law: Theory, Structure, and Operation

Company Law: Theory, Structure, and Operation

Company Law: Theory, Structure, and Operation

Company Law: Theory, Structure, and Operation

Excerpt

The primary purpose of most company law texts is to classify, categorize, and define legal rules. This book stakes out a different ground. It draws on economic theories and concepts to provide a conceptual framework which does two things. First, it offers insights for the reader who wishes to understand the inner workings of companies and is seeking to learn more about the impact of the legal system on corporate activities. Secondly, the book analyses topics of interest for those who wish to evaluate the merits of governmental regulatory strategies and want to consider possible legal reforms.

Since this book relies on economic analysis, a reader who is unfamiliar with economics might be wondering whether the book is suitable for his or her purposes. The economic factor should not, however, be a deterrent. In writing this book I have assumed that the reader has little or no prior knowledge of the discipline. Economic theory can be highly technical and intricate. Fortunately, for the purposes of this book, a little economics can go a long way. Similarly, the reader who is interested in business enterprises but who is concerned that a lack of familiarity with the law will cause problems, should find it worthwhile proceeding. The treatment of legal issues in this book presupposes that the reader has not studied the area in any detail. An important implication of this is that the text focuses much more on basic principles than on precise, technical points. For the reader who is interested primarily in the details of company law, the United Kingdom is well served by texts dealing with the topic.

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