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Witting, Christian A. --- "The basis of shareholder liability for corporate wrongs" [2019] ELECD 286; in Birkmose, S. Hanne; Sergakis, Konstantinos (eds), "Enforcing Shareholders’ Duties" (Edward Elgar Publishing, 2019) 191

Book Title: Enforcing Shareholders’ Duties

Editor(s): Birkmose, S. Hanne; Sergakis, Konstantinos

Publisher: Edward Elgar Publishing

ISBN: 9781788114868

Section: Chapter 10

Section Title: The basis of shareholder liability for corporate wrongs

Author(s): Witting, Christian A.

Number of pages: 22

Abstract/Description:

There is intense debate in the European Union and beyond about the current responsibilities and potential liabilities of shareholders. This chapter argues for greater attention to be paid to the design of a liability regime that incen¬tivises all participants in corporate endeavours to take appropriate measures to avoid the causation of personal injuries. The appropriate liability regime should incentivise shareholders to undertake their statutorily assigned roles in the governance of investee companies - namely, through making proper appointments to corporate boards and undertaking proper monitoring of corporate risk-imposition. The chapter argues that the only incentive that is likely to ensure that shareholders do their part is a residual personal liability for unsatisfied personal injury claims.