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Brooks on Bank & Cheffins on the Corporate Pyramid Myth

By Larry Solum

On Jotwell, <a href="http://tax.jotwell.com/the-corporate-pyramid-fable/">Kimberley Brooks has a pos</a>t on Steven A. Bank & Brian R. Cheffins, <a href="http://ssrn.com/abstract=1544023">The Corporate Pyramid Fable</a>. A taste of Brooks:<ul> Bank and Cheffins do not disappoint. They turn to offer some tentative alternative explanations for the rarity of pyramid structures in the United States. While their analysis is detailed and sophisticated, in summary, they find that pyramid corporate structures were simply never a major part of the U.S. corporate landscape. Indeed, the only commercial activity that was riddled with corporate pyramids in the 1930s was in the utilities sector. Bank and Cheffins suggest that this sector offered a welcome mat to pyramids because the businesses were usually small, isolated, locally owned and controlled, and financially weak.</ul>

Full post as published by Legal Theory Blog on April 05, 2010 (boomark / email).