Mismotivated Corporate Agents and their Authority in Agency Law

Key Points

• Mismotivated corporate agents often act against the best interests of their principals, leading to legal conflicts.
• The paper discusses the principal-agent problem, highlighting how moral hazard complicates fiduciary duties.
• An examination of corporate governance structures reveals potential for authority misalignment within firms.
• This analysis suggests reforms in agency law could better align corporate motivations with responsibilities.