ABSTRACT

This chapter applies the functional framework developed in the previous chapter for the comparison of the legal policies against self-dealing in the five countries under consideration. It shows that the US mainly relies on private enforcement of fiduciary duties whereas enforcement is based more on the influence of institutional investors in the UK. The Netherlands also rely on the role of the judiciary while the norms of a close-knit society matter more in Sweden. Despite the improvements in the discipline of self-dealing, enforcement is still a problem in Italy. Independent directors could improve the efficiency of all these policies.