Download or read book Legal Versus Social Enforcement of Shareholder Duties written by Konstantinos Sergakis and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This chapter aims to decipher the adaptability and efficiency of both legal and social enforcement mechanisms in the area of shareholder duties. It covers both traditional and emerging (namely governance and engagement) shareholder duties in an overarching and policy-oriented approach. It critically challenges the general orientation of legal systems towards desirable levels of efficiency within a mixture of soft law and hard law norms.We endeavour to contribute to the emerging debate about the range and feasibility of enforcement mechanisms in the area of shareholder duties by advocating that both legal and social enforcement mechanisms must be combined to achieve optimal impact on shareholder practices without deterring investment and capital raising operations. Furthermore, we argue that although legal enforcement has a clear and well-established raison d'être in the area of the traditional shareholder duties, it currently sits uncomfortably with the conceptual and operational spectrum of emerging duties. Indeed, social enforcement has significant merits in the area of the emerging duties and should stand as a viable alternative to legal enforcement, at least at the current stage. Our recommendations are relevant to the forthcoming transposition of the Shareholder Rights Directive in the area of enforcement mechanisms (article 14b).