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![handle is hein.journals/valbr2 and id is 1 raw text is: VIRGINIA LAW & BUSINESS REVIEW
VOLUME 2 SPRING 2007 NUMBER 1
SHAREHOLDERS, CREDITORS, AND DIRECTORS'
FIDUCIARY DUTIES: A LAW AND FINANCE
APPROACH
Remus D. Valsan & Moin A. Yahyat
IN TRO D U CT IO N ..................................................................................................... 2
I. DIRICTORS AND STIKF H1,11)1 M RS IN ANND OUT OF INSO] VI (NCY:
A REVIEW OF DOCTRINE AND JURISPRUDENCE ............................................ 4
II. THI OBI,IGATION TO MAXINII THI VA],UI O1' THI FIRM ................ 25
III. THI, IRRI] 1 VANCI 1 OF THI SHARI1HO1D RS' AND CRIDITORS'
SPECIFIC INCENIT ES FOR TIIE PURPOSE OF FIRM V.ALUE
M .AX IM IZ AT IO N ................................................................................................... 29
IV. THU EilTiCTS O1; FIRM V.,UIF MAXIMIZATION ON SHANRIF-HOIDIRS'
.AN D C RIkDITO RS'C ,AM S ......................................IM............................................... 40
A. The Equivalence Between the Firm Value Maximization and the
Shareholder Value M aximization .......................................................... 40
t Mr. Valsan is a PhD student at McGill University and an associate lawyer with Pachiu &
Associates, Romania. HIe received his JD from Nicolac 1itulcscu University, Bucharest,
Romania, and his I.] M from the University of Alberta. Mr. Yahya is an assistant professor
at the Faculty of law, University of Alberta, I dmonton, AB, Canada. He received his BA,
and MAN in economics from the University of Alberta, his Phl) in economics from the
University of Toronto, and his JD from George Mason University, where he was Robert
A. Levy Fellow in Law and Liberty. XXe would like to thank Shannon O'Byrme, Kursad
Asdemir, Stephen Bainbridge, Shi-]Ling Hsu, Claire Hill, Brett McDonnell, Varouj
Aivaian, Nicolas Ju/da, Shi-]Ling Hsu, and participants at the 2006 Canadian ]Law &
I:,conomics Association Conference, and participants at the University of Alberta Faculty
of Law faculty seminar series.
Copyright © 2007 Virgiia Law & Business Review Association](ViewImageLocal?handle=hein.journals/valbr2&div=1&collection=&method=preview&ext=.png&size=3)