This addition to the renowned Clarendon Law Series offers a concise and stimulating introduction to company law. Professor Davies sets out the five key functions of company law: the creation of separate legal personality for the company; the conferment of limited liability on the company's shareholders; the provision of centralised management; the allocation of control rights over the company; and the creation of transferable shares. However, the purpose of company law is not simply to implement these policies as they all have costs as well as benefits. The role of the law is therefore to maximise the benefits whilst minimising the costs. The author examines these crucial policy choices within the context of the central relationships with which company law deals (or ought to deal). These are the relations between senior management and the shareholders; those between majority and minority shareholders; and those between company controllers (whether managers or shareholders) and non-shareholder stakeholders in the company. This new and comprehensive introductory volume is an essential resource for all those studying company law.
Paul L. Davies is Cassell Professor of Commercial Law at the London School of Economics and Political Science and was made a Fellow of the British Academy in 2000. He is a former fellow and tutor in law at Balliol College, Oxford. He is also the editor of Gower's Principles of Modern Company Law 6/e (S 1997).
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