THE PHENOMENON OF SEPARATION OF OWNERSHIP AND CONTROL IN CORPORATE LAW
Abstract
This essay discusses the phenomenon of separation of ownership and control by arguing who is the real owner of company. By discussing the different interests of members this essay identifies that company is considered as real entity which has own interest from its members. This phenomenon is supported by different cases and current legislative norms. [1] The main concern of the modern company is to find whose interest should be issued as primary purpose of the company. Some scholars argued that company and its employees should serve to desires of shareholders who are owner of the company. [2] However, this argument influences the relationship between principal and agent hence agency problems have been concerned as the most unresolved issue of company.