Commercial Trusts As Business Organizations: An Invitation To Comparatists
- Topics:
- Incorporation
- Tags:
- Asset Management,
- Business Operations,
- Business Organization,
- Operational Planning,
- Steven L. Schwarcz
- Source:
- Steven L. Schwarcz
FREE Registration is required
Overview: This article examines whether commercial trusts might be useful in non-U.S. transactions. It proceeds by redacting to fundamental principles, shorn of any uniquely U.S.-specific considerations, and thereby making accessible to foreign lawyers as well as comparative-law scholars. This framework differentiates commercial from gratuitous trusts, and addresses such basic questions, as whether commercial trusts are a better form of business organization than corporations and whether existing trust law is adequate to govern commercial trusts. The framework shows that commercial trusts and corporations can be thought of, in the United States, as mirror-image entities that respond to different investor needs; and that the essential distinction between these entities turns on the degree to which assets need to be placed at risk in order to satisfy the expectations of residual claimants.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: HTML | Date: Jan 2003 | Pages: 1
