chapter  6
Contesting Corporate Decisions
Pages 26

Notwithstanding opportunities for deliberation, it is possible that majority shareholders, directors or managers will still act solely out of self-interest. Some shareholders may be disadvantaged because of the deliberative indifference of the majority. A corporate governance system that relies, in addition to deliberation, on the checks and balances supplied by separations of powers (as I argued in Chapter 4) will go some way towards guarding against this, but only so far. A further mechanism is required. In this Chapter I explain how the idea of contestability — the third of the three principles elaborated in this book — can fulfil this role.