Have All Seats in the First Row Still been Reserved for Shareholders?

Shareholder primacy has gained enormous support among scholars, policymakers and practitioners. Shareholder primacy has become an ideology that has gained considerable momentum. However, the reality of today’s global economy shows that companies are governed and structured to achieve different goals other than maximising shareholder value. There is a transition in corporate law from shareholder primacy to other goals, such as portfolio primacy, which means increasing the value of the entity. This transition is evident in Aramco, Blackrock, Facebook and Apple, as well as many other companies. This research explores the concept of shareholder primacy, seeking to situate it within an understanding of its roots and limitations. The contention is that ‘the company’ should come first. As such, protecting the company and increasing its portfolio should be the primary goal. This is a long-term view that not only allows a company to thrive but is also beneficial to the wider economy. Nevertheless, the underlying argument is that determining a single goal of corporate law is somewhat of an illusion.