The autonomy of organizations and the control by shareholders: A comparative analysis of the interactions between legal forms of business and organizations

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The purpose of this research was to investigate the development of legal forms of business - such as business corporations or limited liability companies -, of organizations and the interactions between those two kinds of development, and thus find out legal forms that allow organizations function effectively. From the research, it was found that the use of partnerships, limited partnerships and Japanese limited liabilty companies (yugen-gaisha) before World War II was related to the development of organizations and the modernization of management. It was also found that after World War II organizations had been expanded rapidly and those organizations utlized business corporations and Japanese LLCs as their legal forms. The comparative analysis with companies in other Asian countries and the analysis of intraorganizational decision making process were also conducted.