Hedge Funds and Private Equity Under Contemporary Corporate Governance: The Dutch State of Affairs

Abstract

Hedge funds and private equity funds have caused a public outrage in the world's largest and most respected economies. In the public opinion these funds have been associated with terms like crowds of locusts and corporate raiders. This thesis first of all examines the role of these funds in contemporary corporate governance, evidently focusing on the central issue in corporate governance, i.e. the separation of ownership and control. Secondly, this thesis addresses the regulatory framework regarding these funds in the Netherlands. In the search for a right regulatory mix this thesis purports a regulatory three-pillar approach, including company law, contractual protection and codes of conduct, to lever the unrest in contemporary corporate governance. The author believes that a regulatory three-pillars approach is a fundamental step towards a healthier Dutch corporate governance regime that effectively nourishes hedge funds and private equity transparency.