Group Members

• 1. Sumita Sarkar 19306014

• 2. Md. Farhad Hosen 19306015
• 3. Md. Rashedul Islam 19306016
• 4. Fahad Haider 17206006
 Topic
Disintegration of empire of
Robert Maxwell
1. Do you believe that following the DTI
reports of the early 1970 s the City
should have been more skeptical of
Maxwell ‘s business activites?
Yes, we believe that following the DTI report of the
early 1970s , the City should have been more
skeptical of Maxwell’s business activities.
 Reasons
 In July, 1971 DTI report concluded dominating
character and unethical behaviour in reporting
to shareholders and investors.
Though DTI marked him a unreliable person
DTI helped and supported maxwell.
AND
we believe that if City was more aware, damage
could be avoided.
2. Contrast Robert Maxwell’s view of
the role of the board of directors and
the role of non executive director with
recent guidance on corporate
governance
According to recent guidelines
there should be balance of power and authority in
the head of company and
for non executive directors they should carry
significant weight in the board’s decision. They
should have independent judgement which is unlike
for Robert Maxwell.
Robert Maxwell was executive
chairman and independent
directors had no control over the
chairman and non executive
directors had no function in Robert
Maxwell’s world.
3. What do you believe are the main
lessons that can be drawn from the
failure of Maxwell’s business empire?
 Representation of financial statements should
be transparent and free from bias.
 Balance should be maintained in responsibilities
and power
 Dominant nature should be avoided for head of
the company
 Non executive directors should have
independent judgement.
4. Who were the main losers when the
Maxwell empire crushed?
Pension fund holders of Mirror Group
Newspaper
Shareholders of MCC and MGN
5. Is it likely that problems of the type
and scale of Maxwell’s financial
dealings could be repeated in a quoted
company in future?
In Bangladesh there are some
examples of deception such as
• Hallmark Scam
• Bismillah Group

So , we can say that professionalism and ethics

should be maintained in business.