Between purpose and profit How the legal framework of profit distribution can promote corporate purpose

Many companies have corporate purpose statements that set out how they aim to contribute to society. This thesis demonstrates that the legal profit distribution structure of companies plays a key role in how successfully companies integrate such corporate purposes into their organisations. The legal profit distribution structure includes the rights that shareholders have to profit distribution, the distribution of decision-making powers, and the requirements and possibilities for reserving profits. It is argued that these rules are relevant for two reasons. First, the legal profit distribution structure determines the space that is available for investment in corporate purpose. Second, the outlook of receiving profits, which is constituted by the right to profit distribution, creates incentives for the board and the employees and influences how corporate purpose is understood and practiced within the organization. This thesis addresses the question how the rules on profit distribution, with specific focus on Dutch company law, should be changed to promote successful corporate purpose integration by limited liability companies. Based on normative legal research and in-depth empirical research, the thesis offers concrete recommendations for reforming company law.