Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
0 of .
Results for:
No results containing your search query
P. 1
Type Of Director Duties Based On Enron Case

Type Of Director Duties Based On Enron Case

Ratings: (0)|Views: 3,778 |Likes:
Published by misseiza
Type Of Director Duties Based On Enron Case From The Perspective Company Law In Malaysia
Type Of Director Duties Based On Enron Case From The Perspective Company Law In Malaysia

More info:

Categories:Types, School Work
Published by: misseiza on Apr 13, 2009
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as DOC, PDF, TXT or read online from Scribd
See more
See less





1.1Introduction 21.2The Issue 3
2.1Enron : A Background42.2Enron Scandal52.3Creative Accounting : The Special Purpose Entities (SPEs)6
3.1Enron Board Of Directors83.2The Role Of Board Of Directors In Enrons Collapse & Bankruptcy9
4.1From The Perspective Of Company Law In Malaysia114.1.1Duty To Acting Bona Fide114.1.2Duty To Act For Proper Purposes124.1.3Duty To Avoid Conflict Of Interest134.1.4Duty Of Care, Skill And Diligence134.2SPEs In Malaysia14
Theoretically, the control of a company is divided between two bodies: the board of directors,and the shareholders in general meeting. In practice, the amount of power exercised by the boardvaries with the type of company. In small private companies, the directors and the shareholderswill normally be the same people, and thus there is no real division of power. In large publiccompanies, the board tends to exercise more of a supervisory role, and individual responsibilityand management tends to be delegated downward to individual professional executive directors(such as a finance director or a marketing director) who deal with particular areas of thecompany's affairs.Another feature of boards of directors in large public companies is that the board tends tohave more de facto power. Between the practice of institutional shareholders (such as pensionfunds and banks) granting proxies to the board to vote their shares at general meetings and thelarge numbers of shareholders involved, the board can comprise a voting bloc that is difficult toovercome. However, there have been moves recently to try to increase shareholder activismamongst both institutional investors and individuals with small shareholdings.It is worth noting that in most cases, serving on a board is not a career unto itself. Insidedirectors are not usually paid for sitting on a board in its own right, but the duty is insteadconsidered part of their larger job description. Outside directors on a board likewise arefrequently unpaid for their services and sit on the board as a volunteer in addition to their other  jobs.
1.2The Issue
As a director of a company, the responsibilities are set out in the Company Law ("the Law").Failure to fulfill the duties may lead to being sued or prosecuted. Enron case may explain someof the major duties of directors and issues facing directors in running a company. This includesecurity fraud, bank fraud, money laundering, making false statement, misleading the public andinsider trading doing by the Enron former directors. This case will give a reality scenario aboutwhat happen in real business now. It will also lead us to the main problem about theresponsibilities and duties of the directors from the perspective of Company Law in Malaysia.

Activity (36)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
Yanran Huang liked this
shamisah liked this
Cathy Cheung liked this
Bhishma J Karki liked this
akilisavi liked this
akilisavi liked this
aryanalynn liked this

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->