by M. Todd Henderson
Cato Institute
September 23, 2013
Is there a better way to improve corporate governance than the reform proposals found in the 2002 Sarbanes-Oxley Act and the 2010 Dodd-Frank Act? By putting an unstated assumption about corporate boards to scrutiny, the answer is “yes.” Who says board members have to be “natural persons”? Corporations should be permitted to hire professional director services firms to be their boards. It could increase the transparency and competition for board services in a way that should increase confidence that firm choices about the role of the board are ones that are in the interests of shareholders and society in general, rather than based on a hidden agenda.

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