Lord Eldon Redux: Information Asymmetry, Accountability and Fiduciary Loyalty
Amir N. Licht
This article investigates the development of accountability and fiduciary loyalty as an institutional response to information asymmetries in agency relations, especially firm-like settings. Lord Eldon articulated crucial role opportunistic behaviour early 19th century, but its roots are much older. A 13th-century trend towards direct farming English manors transformation feudal accounting after Domesday Book Exchequer period engendered profound developments. The manor emerged (possibly first) profit-maximising firm, complete with separation ownership control a hierarchy professional managers. primordial firm relied on loyalty—an regime backed by social norms that was tailored for addressing acute relations. Courts have gradually expanded this regime, which due course enabled Equity develop modern duty loyalty. These insights suggest implications contemporary
Oxford Journal of Legal Studies