An Appraisal of Principle of Equilibrium in a Joint Stock Company: From Capabilities to Shortcomings

Document Type : Research Article

Authors

1 Assistance Professor, Hormoz Research Center, University of Hormozgan, Bandarabss, Iran

2 Assistance Professor, Reja University, Qazvin, Iran

Abstract

Nowadays, the implementation of principle of equilibrium in joint stock company is equal to the realization of maximum utility. However, the demands of shareholders and their differences to the structural shortcomings of a corporation, along with non-equilibrium partnership models have caused the accumulation of multiple economic actors in the form of corporations to optimize the exchange and distribution of ownership. In addition, contrary to the expected philosophy of establishing a company, the balance between the parties and the society should prevail. This analytical approach analyzes the relationship between the principle of equilibrium with the supply and modern rights of shareholders (compulsory buying and selling rights), the principle of equilibrium in the structure and limitations of policymakers and administrators, and also examines the appropriate model of responsibility doctrine for shareholders and managers. Hence, this paper aims to answer this question that how the conflict between the rights of a joint stock company and the principle of balance can be resolved. Moreover, the non-cooperative game restored the members and pillars to equilibrium. In this regard, this research, in light of analyzing and expressing the capabilities and shortcomings, will propose the expected reforms.

Keywords

References

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Private Law
Volume 17, Issue 2
Autumn & Winter
October 2020
Pages 477-499

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