# kaal:claim:3808852-010

**Claim.** Agency theory and the existing legal framework have failed to resolve the core agency conflict arising from the separation of ownership and control, so peaceable and productive coordination of human behavior remains wanting.

**Type.** failure  **Support.** argued

**Holds when.**

- applies to limited liability entities and their constituents

**Source quote.**

> Theory and practice have not successfully addressed the outstanding issues. For example, the core agency conflicts emanating from the separation of ownership (shareholder principal) and control (manager agent) cannot be fully addressed by the existing theoretical and legal framework.

**From.** Wulf A. Kaal, *Decentralization and Feedback Effects* (2021), III. Organizational Decentralization, page 9

**Cite as.** Wulf A. Kaal, Decentralization and Feedback Effects (2021). SSRN: https://ssrn.com/abstract=3808852

**Verify.** sha256 of source PDF `31e91158fdeefebc2f0be54ebf89751f7cdd4c89ecea932888f5ba9be6b1caba` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20Decentralization%20and%20Feedback%20Effects.pdf

**Failure mode.** unresolved separation of ownership and control  (family: agency-cost-and-managerial-opportunism)

**Topics.** governance-design, corporate-governance

**Keywords.** agency-conflict, separation-of-ownership-and-control, corporate-governance, theory-failure

**Related claims.**

- restates: https://wulfkaal.github.io/claims/3373393-003

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.