The Evolution of American Corporate Law | Analysis

The article analyzes the transformation of the role of corporations in the USA, which evolved from entities seeking protection from the state into active players shaping policy. The author points to William McKinley's landmark campaign and the activities of Marcus Alonzo Hanna as the beginning of systemic party funding by big business. A key issue here is agency theory: the question of whether managers have the right to use shareholders' capital to pursue political goals with which the owners may not identify. The text emphasizes the transition from the protection of private property toward the issue of "capital democracy," where economic resources are converted into legislative influence, which in the past led to numerous scandals and attempts to introduce restrictions on corporate political spending.