ABSTRACT
This chapter critically examines the meaning, purpose, and importance of enforcement. It conceptualises enforcement and then goes on to examine the key purpose of enforcement in corporate law. It critically engages with academic commentaries on the importance of enforcement in corporate law. It argues that enforcement plays a crucial role in ensuring good corporate governance. Drawing on the deterrence theory, it offers a theoretical justification for enforcement in corporate law. Overall, it argues that enforcement actions in corporate law are primarily justified by their deterrence purpose. Enforcement is a prerequisite for compliance. Hence, in the absence of effective enforcement of directors' duties, adequate compliance is unlikely.
