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8 Pages • Essays / Projects • Year: Pre-2018
This essay was written for the LAWS1091 mid-semester research essay. The theoretical model used was the Team Production Model (TPM). Essentially, under this model, the board of directors act as a “mediating hierarch” whose role is to further the interests of the entire enterprise and allocate the rewards amongst stakeholders, rather than to act as an agent of the shareholders, withdrawing from the dominant perspective that the sole purpose of a corporation is to maximise share value for shareholders. The team production model is said to have been widely adopted by corporations because it better accommodates their governance needs and should therefore be embraced by courts as the typical form of corporate governance.
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