Moving Beyond Mutual Funds

As has become widely known in the past few years, the mutual-fund industry is more concentrated than ever, especially because of the growing use of index funds.  Whether this is a problem and how to respond have been the topics of considerable debate.  Commentators have laid out several possible reforms, including antitrust responses, regulations that limit the number of companies in an industry that an index fund may invest in, and the wholesale removal of some mutual funds’ power to vote.  But many of these responses would disadvantage index funds, which would be unfortunate because index funds have greatly benefited … Read more

A Reassessment of General Partnership Law

General partnerships are a puzzling form of business in the modern world. A well-established business form with a deep history and sophisticated uniform laws, the general partnership finds itself in a strange position today:  Virtually nobody would be well advised to create one.

As a result, general partnerships come about mainly by accident.  Indeed, probably the most often litigated question in general partnership law is simply whether one exists in the first place, with the putative organizers trying to claim that they didn’t in fact create one.

General partnerships are the only multi-person business organization that can arise accidentally … Read more