Understanding the challenges of corporate governance is central to our
comprehension of the economic dynamics driving corporations today. Among
the most important institutions in capitalism today, corporations and
joint-stock companies had their origins in Europe during the seventeenth
and eighteenth centuries. And as they became more prevalent, the issue
of internal governance became more pressing. At stake--and very much
contested--was the allocation of rights and obligations among
shareholders, directors, and managers.
This comprehensive account of the development of corporate governance in
Britain and Ireland during its earliest stages highlights the role of
political factors in shaping the evolution of corporate governance as
well as the important debates that arose about the division of authority
and responsibility. Political and economic institutions confronted
similar issues, including the need for transparency and accountability
in decision making and the roles of electors and the elected, and this
book emphasizes how political institutions--from election procedures to
assemblies to annual reporting--therefore provided apt models upon which
companies drew readily. Filling a gap in the literature on early
corporate economy, this book provides insight into the origins of many
ongoing modern debates.