This paper analyzes the conditions of transformation from morals of a community to laws of a market-based society, by classifying the law into 3 groups, or levels. At the most fundamental level, there is the law for security, the purpose of which is to guarantee the lives and security of the people. The second level is the law for transactions, the purpose of which is to facilitate and govern transactions, based on the principle of the autonomy of individual persons. The third level is the law for organizations, the purpose of which is to facilitate and govern organizations, based on the principle of the autonomy of each member.
The features of today's market economy are marked mostly by the development of the law for organizations. At this third level, the law accepts two new tasks. One is to cope with the fear of oppression by majority decision. The other is to diminish corruption and idleness among governors of organizations, and to guide them to be sincere servants for every member.
This paper points out that the conflict between the principle of majority decision and the principle of autonomy may be mitigated when the former is coupled with the principle of equal treatment. It also argues that both the exit option and the voice option in an organization may be divided into two types----one type triggered by majority decision and the other by individual decision. Conduct appropriate for an organization must be decided by majority, or by servants elected by majority, in order to get a single decision representing the will of the organization. Any member of the organization, however, may demand that all conduct of the organization be lawful under the rule of law. In addition to these two points, this paper says that a key factor in the modern law for organizations is disclosure, or servants' duty to report to their masters.
Under this kind of legal scheme, modern organizations can play a great role in promoting the prosperity of society. Under these conditions, the more corporations and organizations exist for diverse purposes, the better for the whole human community.
