HOW LENDER GOVERNANCE IS AFFECTING CORPORATE AND CONTRACT GOVERNANCE

Abstract

The essay analyses the effects on corporate and contract governance of the creditor’s intervention in the direction of the financed company. In fact, following the advent of new contractual types that give the lender conformative powers in the debtor company, the traditional idea according to which the creditor was not endowed with adequate incentives to manage the company has gradually been overcome. On the contrary, the creditor’s contribution may prove beneficial both for the good performance of the entity’s business and for preserving, more generally, the market structures in which the debtor company operates.