Dissertation defence (Business Law): LL.B. Yasith Hirimburegama
Time
1.12.2023 at 12.15 - 16.15
LL.B. Yasith Hirimburegama defends the dissertation in Business Law titled “NAVIGATING AGENCY PROBLEMS IN CORPORATE LAW: A Comparative Study through the Lens of Law and Economics” at the University of Turku on 01 December 2023 at 12.15 (Turku School of Economics, LähiTapiola lecture hall, Turku).
Opponent: Professor Jukka Mähönen (University of Helsinki, and University of Oslo, Norway)
Custos: Professor Matti Sillanpää (University of Turku)
Doctoral Dissertation at UTUPub: https://www.utupub.fi/handle/10024/176062
The audience can participate in the defence by remote access: https://utu.zoom.us/j/63850958001
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Summary of the Doctoral Dissertation:
In a bold study blending law and economics, this research tackles complex issues within corporate law, focusing on what are known as the second and third agency problems. The study not only deepens our understanding of these issues but also proposes practical solutions, making it highly relevant in todays world.
The second agency problem deals with the conflicts between company directors and shareholders. The research introduces the idea of shareholder costs within transaction cost theory and suggests ways to make resolving these conflicts more cost-effective. It emphasises the importance of directors and controlling shareholders acting in the company’s best interest, the need for independence of directors and auditors, and the transparency in corporate matters. An innovative proposal is the use of arbitration – a kind of private court – to settle shareholder disputes more efficiently. The study also paves the way for investors who care about social and environmental issues to influence company decisions, particularly when these decisions could harm the environment or the community.
Regarding the third agency problem, the study turns its attention to the broader impact of companies on society and the environment. It argues that considering the rights and costs of all stakeholders – not just shareholders – can actually lead to long-term benefits for the company. The research proposes redefining a company’s purpose to align with public interests, balancing economic success with environmental sustainability. It suggests new laws that require companies to pass strict sustainability tests, especially those with significant environmental impacts. This approach encourages all businesses, regardless of size, to adopt sustainable practices.
In summary, this research provides a fresh perspective on solving corporate agency problems. It advocates for a balance between economic prosperity and environmental sustainability, urging companies to consider the wider impact of their actions. The studys fusion of legal and economic viewpoints offers a novel approach to reshaping the corporate world, aligning it more closely with public interest and sustainable practices.
Opponent: Professor Jukka Mähönen (University of Helsinki, and University of Oslo, Norway)
Custos: Professor Matti Sillanpää (University of Turku)
Doctoral Dissertation at UTUPub: https://www.utupub.fi/handle/10024/176062
The audience can participate in the defence by remote access: https://utu.zoom.us/j/63850958001
***
Summary of the Doctoral Dissertation:
In a bold study blending law and economics, this research tackles complex issues within corporate law, focusing on what are known as the second and third agency problems. The study not only deepens our understanding of these issues but also proposes practical solutions, making it highly relevant in todays world.
The second agency problem deals with the conflicts between company directors and shareholders. The research introduces the idea of shareholder costs within transaction cost theory and suggests ways to make resolving these conflicts more cost-effective. It emphasises the importance of directors and controlling shareholders acting in the company’s best interest, the need for independence of directors and auditors, and the transparency in corporate matters. An innovative proposal is the use of arbitration – a kind of private court – to settle shareholder disputes more efficiently. The study also paves the way for investors who care about social and environmental issues to influence company decisions, particularly when these decisions could harm the environment or the community.
Regarding the third agency problem, the study turns its attention to the broader impact of companies on society and the environment. It argues that considering the rights and costs of all stakeholders – not just shareholders – can actually lead to long-term benefits for the company. The research proposes redefining a company’s purpose to align with public interests, balancing economic success with environmental sustainability. It suggests new laws that require companies to pass strict sustainability tests, especially those with significant environmental impacts. This approach encourages all businesses, regardless of size, to adopt sustainable practices.
In summary, this research provides a fresh perspective on solving corporate agency problems. It advocates for a balance between economic prosperity and environmental sustainability, urging companies to consider the wider impact of their actions. The studys fusion of legal and economic viewpoints offers a novel approach to reshaping the corporate world, aligning it more closely with public interest and sustainable practices.
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