Section 1 General Introduction Corporate Law:Encourage investment and protect shareholder Agency:Shareholder v.s.Director -Enforcemet of Corporate Law:How to motivate the Director to act in the Shareholder's interest? Director:Legal Liabilty Shareholder:Shareholder Suits Agency Shareholder Director Principal Agent Page·3Page 3 Section 1 General Introduction Corporate Law: Encourage investment and protect shareholder Agency: Shareholder v.s. Director Enforcemet of Corporate Law: How to motivate the Director to act in the Shareholder's interest? Director: Legal Liabilty Shareholder: Shareholder Suits Shareholder Principal Director Agent Agency