Posts Tagged ‘legal myths’

How soon after graduating from law school can/should you start your own practice? I hear conflicting reports. On the one hand, I hear lawyers and entrepreneurs advising that you should not try to start a new business until you have worked in the field for several years, not only to build skills but also to build important contacts. On the other hand, I have heard attorneys say that it is harder to start a new practice if you have first worked the grind in a D.A.’s office or large firm because you pick up too many bad habits that need to be undone and because the skills you learn as a bottom-level associate are not really all that transferable to — well, to anything. (See my post here.) I don’t know which of these is “right” (perhaps both are true in some way), but I do know that I have personally spoken […]

31 of 34 directors surveyed said they would cut down a mature forest or release a dangerous toxin into the environment in the name of profit, because they believed it to be their legal responsibility to maximize shareholder value. (See Jacob M. Rose, “Corporate Directors and Social Responsibility: Ethics vs. Shareholder Value,” Journal of Business Ethics, Vol. 73, No. 3 (Jul., 2007), pp. 319-331.) This belief is, unfortunately a misconception. As noted in a recent Harvard Business Review article, The idea that shareholder value should be the organizing principle of the corporation is of relatively recent vintage — it was only in the 1990s that it really became widely accepted — and as legal scholar Lynn Stout keeps explaining, corporate law has far from fully embraced it. Justin Fox, “How’s that Shareholdery-Valuey Stuff Working Out for You?,” Harvard Business Review. Cornell University law professor Lynn Stout recently wrote a book, The Shareholder Value Myth, arguing that nothing in the law requires […]