Corporate Law After Hobby Lobby

Authors

Lyman P.Q. Johnson, Washington and Lee University School of LawFollow
David K. Millon, Washington and Lee University School of LawFollow

Document Type

Article

Publication Title

Business Lawyer

Publication Date

Winter 2015

Abstract

We evaluate the U.S. Supreme Court’s controversial decision in the Hobby Lobby case from the perspective of state corporate law. We argue that the Court is correct in holding that corporate law does not mandate that business corporations limit themselves to pursuit of profit. Rather, state law allows incorporation for any lawful purpose. We elaborate on this important point and also explain what it means for a corporation to “exercise religion.” In addition, we address the larger implications of the Court’s analysis for an accurate understanding both of state law’s essentially agnostic stance on the question of corporate purpose and also of the broad scope of managerial discretion.

Comments

Originally published in The Business Lawyer, Volume 70, No. 1, 2015 © 2015 by the American Bar Association

Recommended Citation

Lyman P.Q. Johnson & David K. Millon, Corporate Law After Hobby Lobby, 70 Bus. Law. 1 (2015).