Question

What are the arrangements for having corporate governance issues regulated at the federal rather than state level? Do you support these arguments?

Answer 1

Corporate governance-

It is the collection of rules and regulation by which corporations are controlled and operated.It is necessary because of the possibility of differeces and conflicts between the stakeholders.Corporate governance includes monitoring ofpolicies ,decisions, practices , and decisions that affect the stakeholders.

The issues related to corporate governance in US is directly govern by the state laws ,and the exchange of securities is govern by the federal law .The people who support this system argues that it enhance the competition between the states.

Yes i support this argument as it benefited alot as we see the state Delaware ,more than 50% of all publicaly- traded companies in the US including 64 % of the fortune 500 have chosen Delware as their leading home.

By early 2016, the US state had passed legislation permitting the establishment of benefit corporations and another 5 were considering as well.