نظريــة الوكالة الرابعة ( تضارب المصالح بين العاملين بالشركة كأصحاب مصالح والشركة)

Abstract

This research seeks to address the issue of conflict of interest arising between the company and its employees. Generally, such conflicts arise when employees prioritize personal interests over those of the company, despite their fiduciary duty to act as agents for the company in accordance with the principles of Agency Theory as articulated in corporate governance frameworks. Consequently, this research endeavours to evaluate the legislative strategies enacted to mitigate this conflict of interest. To achieve this objective, the research analyses the policies established by the Libyan legal system as defined by the legislator, with particular focus on the principles of good faith and the duties of care and loyalty. Additionally, the research addresses the specific provisions set forth in the Libyan Code of Conduct issued by the Ministry of Economy. The research found that the policies and strategies adopted by the Libyan Law are insufficient to effectively resolve the conflict of interest between employees and the company, particularly since their enforcement often requires recourse to judicial proceedings. This reliance on judicial intervention is subject to criticism, as legal proceedings often take considerable time and financial costs. Thus, the research proposes an alternative approach grounded in corporate governance principles, focusing on monetary incentives that encourage employee loyalty to the company. Furthermore, the research recommends the incorporation of specific legal provisions from France and Germany, which empower employees to partake in certain decision-making processes within the company and allow them to serve as observer members on the board of directors.