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Traditional and Innovative Approaches to Legal Reform: 'The New Company Law'

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Author Info
Joseph A. McCAHERY
Erik P.M. VERMEULEN
HISATAKE Masato
SAITO Jun
Abstract

In this paper, we have distinguished three different positions along the reform strategy spectrum of company law. The first position is located on the left side of the spectrum and closest to stasis - where virtually no effective legal changes can occur and where only the idea of reform clashes with legal tradition and standardization pressures. An example of a jurisdiction that takes this position is Germany. Along or near the mid-point of the spectrum, company law changes are less impeded by tradition and standardization factors, but more influenced by interest group pressures. We see England occupying this position. Japan can be seen as a more adaptable jurisdiction located toward the right end of the spectrum and therefore better able to create and introduce more functional legal rules and institutions that turn the traditional view of company law around. It is submitted that Singapore is located on the right side of the spectrum as its legislature is aware of the need to adapt the legal system to international business practices in order to develop a distinct jurisprudence, acclaimed for its efficiency and integrity, which is set apart from the English legal system.Length: 36 pages

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Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 07033.

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Date of creation: May 2007
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Handle: RePEc:eti:dpaper:07033

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  2. John M. Figueiredo & Emerson H. Tiller, 2001. "The Structure and Conduct of Corporate Lobbying: How Firms Lobby the Federal Communications Commission," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 10(1), pages 91-122, 03. [Downloadable!] (restricted)
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  5. Mattei, Ugo, 1994. "Efficiency in legal transplants: An essay in Comparative Law and Economics," International Review of Law and Economics, Elsevier, vol. 14(1), pages 3-19, March. [Downloadable!] (restricted)
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  10. Becker, Gary S, 1983. "A Theory of Competition among Pressure Groups for Political Influence," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 371-400, August. [Downloadable!] (restricted)
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