Agency Theory Extract from "Pierre Vernimmen, Corporate Finance: Theory & Practice" John Wiley & Sons. (p 639-641, 992) Agency problems occur in a company when ownership is separated from management. Managers may be tempted to achieve their own objectives instead of the financial objective. We explore these problems in the discussion which follows. Agency theory says that a company is not a single, unified entity. It calls into question the claim that all of the stakeholders
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Introduction Accounting, auditing are taxation are the main disciplines of studies in business world. Many company are applied the accounting standard, audit assurance and tax compliance to make sure their business running smoothly and to reduce the problem possibilities. Some of the company are in problem to maintaining the financial report due to fraudulent, misstatement and not accordance with Generally Accepted Accounting Procedure (GAAP). Delima Enterprise Sdn Bhd is one of
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1-Police have charged people with a string of offences after an early morning fight outside a Kalgoorlie bar. Officers were called out after reports of people fighting outside the Maritana Street bar about 2.30pm. Police arrived to find an injured man lying on the ground. He had suffered minor injuries and was treated at the scene. "While police were attending to the man, it is alleged another male entered an unlocked police car and drove off," a police spokeswoman said. "It is further alleged
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21. Establishment and incorporation of the Retirement Benefits Authority. Headquarters. Object and functions of the Authority. Assistance in investigation. Authority may investigate. Board of directors. Powers of the Board. Conduct of business and affairs of the Board. Delegation by the Board. Remuneration of Board members. The Chief Executive Officer. Staff of the Authority. The Common Seal of the Authority. Protection from personal liability. Liability of the Authority for damages. The Retirement
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In the essay given, it identifies fiduciary duties of directors as the main issue. There are a few consequences of breaching fiduciary duties. Under general law, a failure to disclose a conflict of interest rendered the transaction voidable at the option of the company. Aside from rescinding the contract, the company can seek to obtain a range of remedies such as an injunction to stop the breach of duty continuing, a constructive trust over assets acquired arising from the breach of duty, an account
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Question 1 Question 1.1 According to Alfred Chandler, strategy is the determination of the long run goals and the objective of an enterprise to adoption of course of action and allocation of valuable resource required to carry out the set goals. Strategy gives direction to achieving a predetermined goal set for companies. It is the game plan that managers use to run the day to day activities of the companies. It mainly defines the long term plan that should be followed in order for businesses
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provisions: I. Board of Directors (A) Composition of Board i. The Board of directors of the company shall have an optimum combination of executive and non-executive directors with not less than fifty percent of the board of directors comprising of non-executive directors. ii. Where the Chairman of the Board is a non-executive director, at least one-third of the Board should comprise of independent directors and in case he is an executive director, at least half of the Board should comprise
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The law of Supporting Knowledge-Based firms and Commercialization The present report tries to provide a summary of the mentioned law. The law was approved by parliament in November 2010. Important events related to knowledge-based firms law are summarized as table below: Activity | Date | Preparing the bill of law in vice presidency for science and technology | January, 2008 | Approval of the law in parliament | November, 2010 | Approval of the "Implementing Regulations" by the government
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two suppliers (Tabitha's Tablecloths or Loretta’s Linens) due to the CEO’s interest in Tabitha’s Tablecloths. What are the reasons? Tabitha Tablecloths is a new company and is owned by the daughter of a member Clark Foster who is sitting on the board of directors. Loretta’s Lines is the current supplier and is well suited to handle the MMI’s large order. Andrew Manning (CEO of MMI) was elected with the help of Clark Foster. So instead of just referring Tabitha the purchasing manager, he showed
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IMPROVING THE EFFECTIVENESS OF CORPORATE BOARDS The primary purpose of for-profit companies is to maximize the return on shareholder’s investment. In instances where ownership of a company and control of said company are separate, shareholders employ directors as the primary monitoring mechanism. In other words, the role of corporate boards is to monitor executive management to make sure that they manage the company in a way that maximizes shareholder value by managing the company with their best
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