Close companies are the majority constituency in the corporate population across the globe. Yet little attempt has been made by corporate law systems explicitly to legislate for them. This is ...particularly so in the United Kingdom, where the courts have assumed the role of providing a customized corporate law regime for such entities. The Duomatic principle of unanimous assent, which is used to whitewash procedural irregularity, is the paradigm in this respect. This article reviews judicial attitudes in the common law world in this regard and evaluates the pros and cons of converting a globally recognized common law principle into a statutory statement of the law. It also considers the wider merits/demerits of a discrete regulatory framework for close companies and private companies in general.
Research Question
Whether and how women directors influence firms' engagement in socially responsible business practices and social reputation among diverse stakeholders is unclear due to conflicting ...empirical evidence, the lack of a coherent theory linking these variables, and inattention to the national contexts in which these relationships occurs.
Research Findings
Results from our meta‐analysis of 87 independent samples suggest that, while generally positive, the female board representation–social performance relationship is even more positive in national contexts when boards may be more motivated to draw on the resources that women directors bring to a board (i.e., among firms operating in countries with stronger shareholder protections) and in contexts where intra‐board power distribution may be more balanced (i.e., in countries with higher gender parity).
Theoretical Implications
Future studies should more attentively examine how firms' institutional contexts enhance or mitigate the relationship between women's representation on boards and corporate social performance. Our findings also highlight the need for a comprehensive understanding of the social performance‐related knowledge, perspectives, and values that men and women bring to boards.
Practitioner/Policy Implications
Our results suggest that, to enhance any benefits of diversity for corporate social performance, efforts be directed at holding boards more accountable toward diverse stakeholders and improving the status of women in society and in the workforce.
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