This chapter examines the theoretical and empirical validity of the “contractarian” theory of corporate governance Beginning with an overview of the contractarian theory and its conceptualization of the relationship between managers and shareholders of a public company, it explains how the theoretical assumptions of the contractarian theory have turned out to be invalid and how the empirical predictions of the theory have not been borne out. The process by which “corporate contracts” develop do not fit the neoclassical model of atomistic competition. As a result, the customization and innovation that the contractarian theory predicts do not occur—either at the IPO stage or at the “midstream” stage when companies are publicly traded.
Transnational Commercial Surrogacy: Contracts, Conflicts, and the Prospects of International Legal Regulation
Cyra Akila Choudhury
With the emergence of assisted reproductive technologies, particularly in vitro fertilization, gestational surrogacy in which an woman can be hired to gestate the child of commissioning parents has grown into a multimillion dollar industry. While many countries prohibit surrogacy, others permit and some even allow women to charge for the service of gestation on a commercial basis. This article addresses the regulation of transnational surrogacy and the related legal conflicts that arise in cross-border agreements particularly in commercial contracts It starts with a brief exploration of the surrogacy industry and growth. It then goes on to describe and analyze some of the legal frameworks that affect surrogacy contracts. The article proceeds to discuss some of the most prominent cross-border controversies to highlight that these conflicts tend to arise from a lack of international or transnational regulation on parentage and citizenship. Finally, the article explores the proposals for international regulation and the prospects of solving some of the more difficult legal problems that have arisen from transnational surrogacy.