THE MODEL BUSINESS CORPORATION ACT AND CORPORATE GOVERNANCE: AN ENABLING STATUTE MOVES TOWARD NORMATIVE STANDARDS.

The article discusses the evolution of the approach integrated by the Model Business Corporation Act (MBCA) to corporate governance in the U.S. It notes that amendments to the MBCA were directed to define the role of the board members while limiting their liabilities. It adds that in line with the several governance failures, accounting frauds and financial crises, the Committee on Corporate Laws of the American Bar Association Section of Business Law has moved from the traditional enabling statute to private ordering.