Congress, Corporate Boards, and Oversight: A Private Law / Public Law Comparison

Paul S. Miller, South Texas College of Law

Abstract

This article argues that a system of congressional oversight based on trust can produce more effective government than one based on highly detailed regulations. The article first presents historic examples of congressional oversight and the ways in which trust contributed both to the effectiveness of the oversight and to the success of the policies at issue. The article goes on to examine the rise of trust theory in corporate governance as a means of making oversight by boards of directors more effective and thereby making corporations more profitable. The final part of the article explores how use of trust theory in corporate governance can be applied to civil governance.