Environmental Risks : Should Banks Be Liable?

This paper studies the impact of banks' liability for environmental damages caused by their borrowers. Laws or court decisions that declare banks liable for environmental damages have two objectives : (1) finding someone to pay for the damages and (2) exerting a pressure on a firm's stakeholders to incite them to invest in environmental risk prevention. We study the effect that such legal decisions can have on financing relationships and especially on the incentives to reduce environmental risk in an environment where banks cannot commit to refinance the firm in all circumstances. Following an environmental accident, liable banks more readily agree to refinance the firm. We then show that bank liability effectively makes refinancing more attractive to banks, therefore improving the firm's risk-sharing possibilities. Consequently, the firm's incentives to invest in environmental risk reduction are weakened compared to the (bank) no-liability case. We also show that, when banks are liable, the firm invests at the full-commitment optimal level of risk reduction investment. If there are some externalities such that some damages cannot be accounted for, the socially efficient level of investment is greater than the privately optimal one. in that case, making banks non-liable can be socially desirable.

Environmental Risk: Should Banks Be Liable?

This paper studies the impact of banks' liability for environmental damages caused by their borrowers. Laws or court decisions that declare banks liable for environmental damages have two objectives : (1) finding someone to pay for the damages and (2) exerting a pressure on a firm's stakeholders to incite them to invest in environmental risk prevention. We study the effect that such legal decisions can have on financing relationships and especially on the incentives to reduce environmental risk in an environment where banks cannot commit to refinance the firm in all circumstances. Following an environmental accident, liable banks more readily agree to refinance the firm. We then show that bank liability effectively makes refinancing more attractive to banks, therefore improving the firm's risk-sharing possibilities. Consequently, the firm's incentives to invest in environmental risk reduction are weakened compared to the (bank) no-liability case. We also show that, when banks are liable, the firm invests at the full-commitment optimal level of risk reduction investment. If there are some externalities such that some damages cannot be accounted for, the socially efficient level of investment is greater than the privately optimal one. in that case, making banks non-liable can be socially desirable.

Directors’ Duty of Care after Peoples : Would It Be Wise to Start Worrying about Liability

This article was first published in the Canadian Business Law Journal.

L’accès gratuit à l’eau potable bénéficie-t-il nécessairement au plus défavorisé ? Une discussion critique à l’aune du cas de la Flandre

This article discusses the 1997 Flemish reform in the domestic water sector (Belgium). It abolished a previously existing social correction of the wastewater charge. Instead, a tax exemption for some disadvantaged categories was introduced. Moreover, water consumers receive 15 m3 of drinking-water per person per year for free. This policy change was assumed to contribute better to social equity. However, the reform led to changes in the drinking water tariffs by the water companies. Furthermore, a study conducted by Van Humbeeck (1998) shows that the distributive impact of the new water regulation is negative. As a matter of fact, the water reform increased the regressivity of the total wastewater and drinking water expenses. The Flemish example shows that ex ante evaluation of any reform of public services is a prerequisite for more social justice in the provision of basic goods to underprivileged citizens.

The right to be forgotten under European Law: a Constitutional debate

Cet article met en lumière la perspective européenne sur un des plus importants défis que l’Internet et le Web 2.0 présente pour la vie privée et le droit à la protection des données. L’auteur y soulève des problématiques liées à la mémoire numérique et distingue à partir de plusieurs cas où les individus seraient intéressés de réclamer l'oubli tant dans les réseaux sociaux, les journaux officiels des gouvernements et dans les bibliothèques médiatiques numériques. Il trace l’histoire de l’identification du droit à l’oubli dont les fondements ont été définis par les agences françaises, italiennes et espagnoles de protection des données. En conclusion, il pose son regard sur un nouveau cadre européen de la protection des données comprenant le droit individuel à voir leurs données supprimées lorsqu’elles ne sont plus nécessaires à des fins légitimes.

Why should Restrictive Clauses be applicable in Cases of Forced Selling of Limited Liability Company Shares?

In many European countries, one of the most complex and widely discussed issues addressed by legal systems with respect to forced selling of limited liability and public limited company shares is the impact of possible statutory restrictions on transfers . Thus, while some authors deny the applicability of such provisions (as a possible avenue for commission of creditor fraud) , others support their validity (on the basis of prevention of possible fraudulent actions affecting interests protected by restrictive causes). In my opinion, a solution must be found in which prosecution of creditor fraud co-exists with respect for the rights scheme. As a general rule, this solution would call for applicability of restrictive clauses to cases of forced selling, regardless of whether such statutory provisions are viewed in terms of order or alienation.

«The Soviet cannot be trusted» : les relations diplomatiques entre l’URSS et la Grande-Bretagne dans les années 1920.

Ce mémoire tente de présenter l’état des relations diplomatiques entre la Russie soviétique, puis l’Union des républiques socialistes soviétiques (URSS) à partir de 1922, et la Grande-Bretagne entre 1920 et 1927, à travers les documents du Foreign Office britannique. Pour cela, il présente le retour progressif des relations officielles entre les deux pays sous la gouverne du premier ministre britannique Lloyd George, de 1916 à 1922, et la mise en place d’une politique britannique à l’égard du gouvernement soviétique. Il tente ensuite d’établir les politiques des différents gouvernements qui suivent celui de Lloyd George, et de voir si ces politiques marquent une rupture avec la politique du gouvernement de Lloyd George ou si, au contraire, il existe une continuité dans ces politiques, malgré le changement de gouvernement. L’hypothèse principale que nous soutenons est que malgré les changements de gouvernements entre 1920 et 1927, la politique de la Grande-Bretagne restera identique durant toute la période, et ce malgré les différents gouvernements britanniques qui vont se succéder : un gouvernement d’union, deux gouvernements conservateurs et le premier gouvernement travailliste. Nous croyons que la prétendue « propagande soviétique » sera l’une des lignes directrices des relations entre les deux pays pendant la période étudiée, lignes établies par Lloyd George et son gouvernement au début de 1920. Nous soutenons également que cette « propagande » sera le pivot des relations entre les deux pays, et qu’elle sera un frein constant dans l’établissement de relations normalisées avec l’Union soviétique. Nous croyons que cette propagande entraînera une « paranoïa » de la part du gouvernement britannique qui, pendant toute la période que nous étudions, passera tout son temps à se plaindre au gouvernement soviétique de « sa » propagande, entraînant finalement la rupture des relations en 1927.

Managing Profound Suffering at the End-of-Life: Should expanding access to continuous deep sedation be the priority?

Commentaire / Commentary

Moral Responsibility in the Context of Prenatal Testing: What can be Expected?

Commentaire / Commentary

Éthique et évasion fiscale au Bénin

Full Text / Article complet

“When I Grow Up I Want to be a Doctor”: Promoting Atikamekw Children’s Interest for Health Professions Through a Book Collection

Introduction: Aboriginal peoples are underrepresented within the healthcare professions, and recruitment of Aboriginal students has become a priority for medical schools in Canada. Because of very low high-school completion rates among youth living on-reserve, the Université de Montréal’s Faculty of Medicine launched in 2011 the Mini-école de la santé, a program where health sciences students visit aboriginal schools. Through activities and games, students introduce children to the discovery of health professions. In 2014, the Health Library joined the project with the development of a science books collection for the school libraries and by having a librarian participate in the school visits. Description: In collaboration with the two Atikamekw elementary schools to be visited in 2014, 70 children books on science, human anatomy and the health professions were selected and purchased for each school by the Health Library. A librarian joined the health sciences students during the schools visits and the book collection was integrated in the activities organised during the day. The books were afterwards donated to the school library. Outcomes: Children, school teachers and administrators greatly appreciated the collection. The books were integrated in the library school collections or in the classrooms collections. Discussion: Quality school libraries play an important role in student learning, and access to science and health sciences books could enhance children‘s interest for the health professions. By participating in this project, the library is supporting the Health sciences faculties in achieving their goal of reaching out to Aboriginal children and making them aware that a career in health sciences is possible for them. The collaboration has been successful and will be pursued: the Health library will work with the high schools in the same Atikamekw communities to develop science book collections and the schools will be visited in 2015. A Masters in Library and Information Science student will be joining the Mini-école. Upgrading all donated collections is planned as well.

Should a non-rival public good always be provided centrally?

This paper discusses the problem of optimal design of a jurisdiction structure from the view point of a utilitarian social planner when individuals with identical utility functions for a non-rival public good and private consumption have private information about their contributive capacities. It shows that the superiority of a centralized provision of a non-rival public good over a federal one does not always hold. Specifically, when differences in individuals’ contributive capacities are large, it is better to provide the public good in several distinct jurisdictions rather than to pool these jurisdictions into a single one. In the specific situation where individuals have logarithmic utilities, the paper provides a complete characterization of the optimal jurisdiction structure in the two-type case.