Michael D. Goldman
Eileen M. Filliben
Partner with Potter Anderson & Corroon LLP
Formerly an associate with Potter Anderson & Corroon LLP
Corporate Governance – Current Trends And Likely Developments For The Twenty First Century
This article discusses current trends in corporate governance and theorizes on the likely impact of those trends for the twenty-first century. Part II focuses on an overview of four current trends in the areas of technology, globalization, shareholder activism, and private ordering. Part III assesses the likely impact of those trends on corporate governance in the twenty-first century. A successful corporation will need to seamlessly integrate technology to act effortlessly across international time zones, and it will need to raise capital quickly and efficiently in different global capital markets. The authors posit that these needs will lead to the emergence of a universal entity, affording its creators maximum flexibility.
One hundred years ago, cars, televisions and computers did not exist; women could not vote; and most people thought nothing about waiting a month, or more, to receive their mail. Today, the Concord can make a Trans-Atlantic flight in less than three hours; women hold two out of the nine seats on the U.S. Supreme Court; and fax machines and E-mail have made waiting overnight for Federal Express seem inefficient. Given how far we have come this century, one cannot help but wonder just what Y"2.1"K problem businesses will be grappling with 100 years from now.
This article surveys current trends in corporate governance and theorizes on the likely impact of those trends for the twenty-first century. Specifically, Part II provides an overview of four current trends that are changing the way corporations do business. First, technology is reshaping the way companies raise capital, interact with suppliers and customers, and relate to investors. Second, the globalization of the economy is making the world a much smaller place, and nationalism is giving way to interdependence and economic efficiencies. Third, shareholders are taking a more active monitoring role and are seeking creative ways to hold management accountable. Fourth, corporate promoters are eschewing traditional corporate forms in favor of those providing the maximum potential for private ordering.