Singapore law states that price sensitive information belongs to the company. However, the arguments made in “Property rights” push for the case that if this information does belong to the organization, then it is the organization’s right to allow its employees to use it for insider trading. Let us examine these arguments. Who does price-sensitive information belong to? The employees who create this price sensitive information are empowered by the finances and reputation of the firm. Without this
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Major Motors, Inc., a publically held company, recently agreed to sell its Major Automotive Parts (MAP) operations to National Guaranteed Repairs (NGR), another publicly held company. NGR paid cash plus common stock that, after issuance, would be equal to roughly 15% of NGR’s outstanding shares, which would in turn make Major Motors the largest shareholder by a considerable margin. The question resulting from this transaction is whether or not the equity method must be applied to Major Motors’ 15%
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Exercise 1 Volkswagen Supervisory Board German Company Volkswagen, Europe’s largest carmaker had a supervisory board. Institutional investors demanded that the chairman of the supervisory board, Herr Piech resign because of alleged conflict of interest. They claimed that Herr Piech and his family held significant shares in Porsche, which held a near 20% stake in Volkswagen. German’s voluntary corporate governance code states that conflict of interest should result in the termination of a supervisory
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After careful analysis of the numerous business structures available, it is my recommendation that your business structure change to an S-Corporation. In order to declare your company an S-Corporation, you must file your company as corporation in the state your company is headquartered. Then all shareholders of your company must sign and file Form 2553 with the IRS to elect your company as an S-Corporation. As an S-Corporation you must adopt bylaws, hold meetings with all shareholders and directors
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Financial Environments Worksheet Michelle Ford HCS/577 June 16, 2014 Robert Adams Financial Environments Worksheet In the first section, identify three specific HEALTHCARE organizations within each of the for-profit, not-for-profit, and government financial environments. For the second and third sections of the worksheet you should focus ONLY on the three environments NOT the specific organizations. In the second section, compare the similarities of financial structures
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Unit 1 Assignment 1 1. Finance: The science that describes the management, creation and study of money, banking, credit, investments, assets and liabilities. Finance consists of financial systems, which include the public, private and government spaces, and the study of finance and financial instruments, which can relate to countless assets and liabilities. Some prefer to divide finance into three distinct categories: public finance, corporate finance and personal finance. All three of which
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COMPANY LAW – MINORITY PROTECTION Question: Does company law protect shareholders? Discuss. Answer: Shareholders have ultimate control of a company. However the directors run the company's business and are responsible for its management. In general shareholders cannot interfere, although they can appoint and remove directors. Some constitutional matters, such as changes of the company's name, or to its Memorandum or Articles of Association, or to put it into liquidation (when solvent)
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What is Agency Problems When a principal hires an agent to carry out specific tasks, the hiring is termed a "principal-agent relationship," or simply an "agency relationship." When a conflict of interest between the needs of the principal and those of the agent arises, the conflict is called an "agency problem." In financial markets, agency problems occur between the stockholders (principal) and corporate managers (agents). While the stockholders call on the managers to take care of the company
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Causes of Collapse 1. The Education Act of 1992 The Education Act of 1992 is often referred to as the main reason of the collapse of the pre-need industry. The Act deregulated the education industry and the 15% capped tuition fee increase was removed. As a result, educational institutions increased their tuition fees tremendously. Ten years after the Education Act of 1992 was enacted, the cost of a four year educational plan increased by 1200 percent. The yield on investments by the pre-need
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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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