MAXIMISING SHAREHOLDER VALUE OR SATISFYING STAKEHOLDERS’ INTERESTS - WHOSE GOALS DO DIRECTORS PURSUE WHEN MANAGING A CORPORATION’S BUSINESS?

Despite the increased interest in issues on the purpose of a corporation, the fiduciary duties of directors and the protection of shareholders’ interests, one has to recognise that the relevant literature on this topic is not sufficient to appraise the Russian approach fully. Thus, this article analyses Russian peculiarities in determining the purpose of a corporation: whether or not it is maximising shareholder value and/or satisfying stakeholders’ interests, considering the already established approach abroad. The article substantiates that from current practice, it can be noted that the Russian corporate environment is different from that of England and the United States, which is due to several legal and economic characteristics. Thus, the present article covers the development of the discussion regarding the purpose of a corporation in Anglo-American practice, as well as the main arguments for two approaches to determining the purpose of a corporation: maximising shareholder value and stakeholder theory. The second part of the paper is devoted to Russian law and its features in determining the purpose of a corporation.