Corporate Directors:In Search of a European Normative Model for Legal Persons as Board Members

Talens Paula del Val ()
Additional contact information
Talens Paula del Val: Postdoctoral Research Fellow, Universidad de Valencia. «Ayudas para contratos predoctorales para la formación de doctores del Ministerio de Economía, Industria y Competitividad/FSE. Periodo de orientación postdoctoral. Proyecto DER2013-44438-P ‘La renovación tipológica en el Derecho de sociedades contemporáneo’». Principal Investigator: Prof. Dr. Dr. h. c. José Miguel Embid Irujo.Universidad de ValenciaValenciaSpain

European Company and Financial Law Review, 2017, vol. 14, issue 4, 609-636

Abstract: Juridical persons may be appointed as company directors in a number of European Member States, such as France, Belgium Spain or Italy, while this practice is forbidden in other jurisdictions (traditionally, Germany and, today, the United Kingdom). The lawfulness of the so-called > depends on a policy decision that legislators may make after balancing potential benefits and risks deriving from placing corporate bodies on the board. Corporate directors are not an essential tool for the European business environment, but are indeed a European corporate governance practice which does provide flexibility and operative advantages. This paper evaluates regulatory alternatives for both domestic legislation and prospective European instruments. It analyses how placing legal entities on a board may affect corporate governance and underlines their potential applications, namely, in groups of companies. It then examines two opposite policy approaches to corporate directors, an express prohibition and an explicit admission, as considered by certain Member States and article 47.1 of the Societas Europaea Regulation. We further explore the predominant model for the admission of corporate directors, which is based on three core elements: an enabling provision, the compulsory appointment of a permanent representative, and a joint liability rule.

Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/ecfr-2017-0028 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:eucflr:v:14:y:2017:i:4:p:609-636:n:2

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/ecfr/html

DOI: 10.1515/ecfr-2017-0028

Access Statistics for this article

European Company and Financial Law Review is currently edited by Heribert Hirte

More articles in European Company and Financial Law Review from De Gruyter
Bibliographic data for series maintained by Peter Golla ().