...1.0 Introductions 2.0 Literature review 3.0 Background and history of Development CG The term of corporate governance not just been introduced but it also drew attention of the public about the weaknesses of Malaysian corporate governance practice due to the Asian Financial Crisis in 1997. After 1998, the government of Malaysia decided to adopt the corporate reforms to enhance the quality of good corporate governance practice in the country. The main sources of the Corporate Governance reforms agenda in Malaysia other than Malaysian Code on Corporate governance are the Capital Market Master Plan (CMP) and also Financial Sector Master Plan (FSMP). This sources provides guidelines on the principles and best practices in corporate governance and the direction for the implementation as well as charts for the future prospects of corporate governance in Malaysia. Malaysian Code on Corporate Governance is an initiative that established by the Financial Committee on Corporate in 1998. This committee is consists of both government and also industry. MCCG was introduced on March 2000. This code brought a systematical change in structure of public and also private corporation. The principles underlying the report focus on four areas which are board of directors, directors’s remuneration, shareholders and accountability and audit. Compliance with the code is not mandatory. However, the listed companies in Bursa Malaysia are required to prepare their annual report on how they have...
Words: 2720 - Pages: 11
...1. The corporate governance structure of combined stock corporations in a specified country is dogged by several factors: the legal and regulatory framework outlining the truths and responsibilities of all parties involved in corporate governance the de facto realities of the corporate environment in the country; and each corporation’s articles of association. While corporate governance supplies may vary from corporation to corporation, several de facto and de jure factors touch corporations in a similar way. Therefore, it is possible to outline a "model" of corporate governance for a given country. In each country, the corporate governance structure has certain features or basic elements, which distinguish it from structures in other countries. To date, scientists have identified three models of corporate governance in developed capital markets. These are the Anglo-US model, the Japanese model, and the German model. Each model identifies the following constituent elements: key players in the corporate environment; the share ownership pattern in the given country; the composition of the board of directors. The regulatory framework disclosure requirements for publicly-listed Stock Corporation. The corporate actions requiring shareholder support and interaction among the key players Most corporate governance structures are comprised of a board of directors, an executive management team, and departments that may be organized according to function, division, or a combination...
Words: 804 - Pages: 4
...Definitions of Corporate Governance There are many definitions for corporate governance. Sir Adrian Cadbury in his 1992 Report on the Committee on Financial Aspects of Corporate Governance p.15 says “Corporate Governance is the system by which companies are directed and controlled.” Another definition is, “corporate governance can be defined as the stewardship responsibility of corporate directors to provide oversight for the goals and strategies of a company and foster their implementation.”(Cornelius 2005, p. 12). The OECD Glossary of Statistical Terms website (2010) states that corporate governance refers to “procedures and processes according to which an organisation is directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organisation – such as the board, managers, shareholders and other stakeholders – and lays down the rules and procedures for decision-making.” The Financial Times Lexicon website (2010) defines corporate governance as “How a company is managed, in terms of the institutional systems and protocols meant to ensure accountability and sound ethics. The concept encompasses a variety of issues, including disclosure of information to shareholders and board members, remuneration of senior executives, potential conflicts of interest among managers and directors, supervisory structures, etc.” Brancato and Plath (2003) p.8 say “Corporate governance is defined in...
Words: 798 - Pages: 4
...Integrated case studies (Acc 4291) Case report 1 flat cargo berhad: An auditor’s conundrum Case Synopsis The case is related to one company known as Flat Cargo Berhad (FCB). FCB was one of the largest air freight companies in Malaysia which servicing several government linked companies including Freight Malaysia Berhad. FCB is a listed company and was registered as an investment holding company with several subsidiaries. Among its subsidiaries are FC Spare Sdn Bhd, Cargo Management Sdn Bhd, FCB (SPV) Ltd, Cargo Air Services Sdn Bhd and FC Air Ltd. FCB started its operations in 1997 with two aircrafts: a Boeing 737-200F and a Cessna Grand Caravan. FCB’s major shareholder in 1997 had been Bangor Berhad, which was part of a diversified international family owned conglomerate, the Miri Group. Up to 2005, FCB secured agreements with well-established companies such as Worldwide Express, United Parcel Services (UPS), Nationwide Express, Citylink, Bax Global and Nippon Express. The Chairman of FCB was Dato’ Ibrahim Samad who was also an independent non-executive director of the company. The top management team comprised of Mr Lim Loon Sim as Chief Executive Officer, Mr Ali bin Ahmad as the Executive Director and Mr Kim Boon Chok as the Chief Financial Officer. In 2005, FCB’s counter was ranked 4th in terms of capital gains and dividends to shareholders. Its share price at 31 December 2001 had been RM 1.89, but by end of 2005, the share price surged to RM10.60 per share...
Words: 2060 - Pages: 9
...organization in order to achieve the business financial objective (Jones & Bartlett, 2010). There are many financial decisions that are made on a day to day basis for any transactions to occur (Jones & Bartlett, 2010). These decisions are made according to the organizations fiscal objectives (Jones & Bartlett, 2010). But we all may have one question and that question is “How well are health care organizations’ finances and are these health care organizations financial records accurate? The four elements of financial management are recognized as planning, controlling, organizing and directing, and decision making (Jones & Bartlett, 2010). These are decisions are made on what kind of task is being performed. Some organizations strain over three of the elements which are planning, controlling (organization and directing is part of the controlling element), and decision making (Jones & Bartlett, 2010). 1. Planning can be defined as: The financial manager identifies these four elements as steps for an organization to accomplish their objectives. The planning process is to identify and take the initial steps to accomplish those objectives (Jones & Bartlett, 2010). 2. Controlling: Financial manager will take control and making sure that each part of the organization is following the plans that have been put into place (Jones & Bartlett, 2010). 3. Organizing and directing: This is a decision made by the financial manager on how resources are carried throughout the organization...
Words: 1063 - Pages: 5
...dollar organization, operating in nearly 80 countries worldwide. The roots of Halliburton trace back to the 1900s, with countless mergers and company acquisitions dotting its history. Halliburton is one of world’s leading oilfield services providers. The organization has a strong financial history that continues despite scandals, regulatory requirements and growing litigation. Halliburton continues to lead its market in innovative practices, diversified revenue streams and the breadth of its global footprint within the oilfield services industry. Table of Contents Page Abstract……………………………………………………………………................ 2 Table of Contents……………………………………………………………………. 3 History of Halliburton ……………………. ……………………………………….. 4-5 Corporate Governance………………………………………………………………. 5-7 Holistic Intrapreneurship …………………………………………………………… 7-9 Conclusion ………………………………………………………………………….. 10 References…………………………………………………………………………....11 History of Halliburton Halliburton is one of the world's leading oilfield services providers with revenues over $18 billion in 2010. Halliburton was incorporated in 1924 in Delaware. Halliburton has approximately 70,000 employees worldwide, and is in the business of “providing engineering and construction services to the upstream energy industry, to infrastructure companies and various governments across the world.” (Datamonitor, 2011). Halliburton has operations in nearly 80 countries and makes products at manufacturing and processing facilities worldwide...
Words: 2014 - Pages: 9
...Strategic management, corporate responsibility and stakeholder management Integrating corporate responsibility principles and stakeholder approaches into mainstream strategy: a stakeholder-oriented and integrative strategic management framework Takis Katsoulakos and Yannis Katsoulacos Takis Katsoulakos is a Director at INLECOM Ltd, Burgess Hill, West Sussex, UK. Yannis Katsoulacos is a Professor at Athens University of Economics and Business, Athens, Greece. Abstract Purpose – The purpose of this article is to establish a strategic management framework that supports the integration of corporate social responsibility principles and stakeholder approaches into mainstream business strategy. Design/methodology/approach – A top-down and bottom-up approach was used to develop the proposed framework. The top-down approach focused on analyzing the main strategic management theories including social responsibility movements to identify complementary concepts and create a relevant topology. The bottom-up approach was based on empirical research on the views of business companies on corporate social responsibility, a review of best practices and case studies mainly in Greece. Findings – The paper describes a stakeholder-oriented integrative strategic management framework linking the main strategic management theories across value, responsiveness and responsibility dimensions. A mathematical model is presented describing the synergistic development of advantage-creating knowledge and...
Words: 7389 - Pages: 30
...1.0 Introduction Flat Cargo Berhad (FCB) is an air freight services and ground handling company. Its company’s operations cover Asian Pacific region including China, Japan, Thailand, Singapore and many more. Their main customers are United Parcel Services (UPS), City Link and Nationwide Express. The main shareholder for FCB is Bangor Sdn Bhd which is part of Miri Group represented by 26.5% of the company interest. Kencana & Associates is the auditor company that audit FCB’s account. The leader of the auditors is Mr Chuah Mun Soong. The auditing team found some irregularities in accounting record of FCB. There are two parties which Mr Chuah has to report, they are his superior, Mr Keong Chee Wah and FCB Audit Committee. However, Mr Chuah concerns that FCB might have a fraud due to the past experience such as Media Com and Blue Vital. 2.0 The Root Cause of the Problems As per our discussion about this case study, we managed to find out several root cause of the problems. 2.1 Rising of Oil Price The first root cause is the rising in oil price in the year 2005. In the year 2005, there was an international crisis occurred with the exceptional increase in oil prices. The hike started in mid-2004 at US$40 per barrel but eventually, the increase continued to stages of US$50, US$60, US$65, US$70 and US$80 per barrel. The price hike in fuel surcharges drastically affected the freight forwarding industry significantly because of its reliance on fuel for operations. This...
Words: 2524 - Pages: 11
...Jashldkahsdkhalksdlakjsldkjasjdlkajlskdjlkajksjdlkajsd Asdj;ajsdkjakjsdkjaksjdkajskdjajsldkja jkajsldkjalkjsldkjlakjsdlkjalkjsdkakjsdkajlksjdlkajlskdx Collins, Ellen I have attained two undergraduate degrees in European studies and law and a Masters degree in trade, corporate governance and European law; in highly recognisable UK universities. Currently I am undertaking a full time Masters degree in Business law in one of the best UK and world universities. I am an experienced researcher and I have worked on different research projects demanding law elements from UK and other jurisdictions. In addition I have more than a year's legal work experience providing the law firm's clients with high quality legal research documents. I have an eye for perfection. It will be a pleasure to work for you. Sample Do the UK Combined Code on Corporate Governance and the legislative framework regulating Listed PLC's in the UK effectively address the problems revealed by the corporate scandals of recent times? Introduction> In UK there are the sole trader, the partnerships, the companies and the joint venture, structure businesses. For the sole trader and the partnerships because the businesses are controlled by the owners and they work for the benefit of the owners, it has not been necessary to have increased measures for the protection of the owners benefit. In the companies though that it is a different legal entity, not related to the persons that initially established it, there is...
Words: 28138 - Pages: 113
...‘Revisiting the Capital Structure puzzle: UK Evidence’ Al-Najjar, B. and Hussainey, K. (2011). Revisiting the capital structure puzzle: UK evidence. The Journal of Risk Finance, 12 (4), 329- 338. This essay will summarise and critically review the report of Al-Najjar and Hussainey (2011) in which the effects of potential drivers of corporate capital structure are differing for three different definitions of capital structure. The article of Al-Najjar and Hussainey is a meaning but problematic piece of research. This essay aims to critically analyse the strengths and weaknesses of authors’ arguments and mainly focuses on the introduction, theoretical background, hypothesis, empirical tests, and result. Summary Al-Najjar and Hussainey found a capital structure puzzle which is involved with different definition of capital structure and determinants of corporate capital structure. They collected a sample data of 379 non-financial firms in the UK from 1991 to 2002, and investigated firms’ corporate characteristics (including firm growth rate, risk level, firm size, asset tangibility, and firm’s profitability) and corporate governance elements (including non-executive directors and board size) which are the potential drivers of UK firms’ capital structure. They utilised the fixed panel models and random effect Tobit models to analyse statistics. There are three definitions of capital structure: 1. Long-term debt to equity ratio = Total loan / (equity capital + reserves...
Words: 1797 - Pages: 8
...FACCT604A Monitor Corporate Governance Activities Research Project Semester 1 2007 Introduction The Directors of Expand P/L are about to make the transition from a large company to a public one. They are aware of recent developments in corporate governance and directors liabilities. They have asked you to provide advice on corporate governance aspects and to act as a consultant during the period of transition. You decide to use the corporate governance toolkit as the basis for your research. a) Overview: 1. What are the basic principles of corporate governance? • Transparency: Are the board telling us what is going on? • Accountability: Is the board taking responsibility? • Corporate Control: Is the board doing the right thing? 2. What mechanisms are suggested by the ASX corporate Governance Council? Relating to the three principles stated in the last question. The ASX Corporate Governance Council translates the elements into mechanisms: • Is the board telling us what is going on? →forming an environment to take risk. • Is the board taking responsibility? →clarifying the role of the board and management. • Is the board doing the right thing? →Meeting information needs of investment communities. 3. What is an SME? SME stands for Small and Medium Enterprises. 4. What processes would you expect to find in a company relating to risk management and compliance...
Words: 1703 - Pages: 7
...Issues………………………………………………………………………………………………2 The Discovery of Fraud……………………………………………………………………..…..3-4 Corporate Governance of FCB……………………………………………………………………5 Auditor Dilemma……………………………………………………………………….……….5-7 Using the Fraud Triangle Model to analyze the situation in Flat Cargo Berhad……………..…8-9 Who is responsible in the fraud of Flat Cargo Berhad ……………………………………..…10-11 Prevention Measures for Fraud ……………………………………………………………….12-13 Detection Measures for Fraud…………………………………………………………...……14-15 Recommendation…………………………………………………………………….……….16-17 Conclusion…………………………………………………………………………...……….18-19 References………………………………………………………………………………………..19 Introduction The case is related to one company known as Flat Cargo Berhad (FCB), FCB was one of the largest air freight companies in Malaysia which servicing several government linked companies including Freight Malaysia Berhad. FCB is a listed company and was registered as an investment holding company with several subsidiaries. Among its subsidiaries are FC Spare Sdn Bhd, Cargo Management Sdn Bhd, FCB (SPV) Ltd, Cargo Air Services Sdn Bhd and FC Air Ltd. FCB started its operations in 1997 with two aircrafts: a Boeing 737-200F and a Cessna Grand Caravan. FCB’s major shareholder in 1997 had been Bangor Berhad, which was part of a diversified international family owned conglomerate, the Miri Group. On September 2001 the company was listed in Bursa Malaysia. The main core business was to provide air freight transportation within the Asian region. As...
Words: 5971 - Pages: 24
...Introduction Corporate governance refers to the method by which a corporation is directed, administered or controlled. It includes the laws and customs affecting that direction, as well as the goals for which it is governed. Corporate governance mechanisms and controls are designed to reduce the inefficiencies that arise from moral hazard and adverse selection. Corporate governance is also viewed as a process of monitoring performance by applying appropriate counter-measures and dealing with concepts such as transparency, integrity and accountability. Corporate governance requires corporations to exercise immense accountability to shareholders and the public, and also monitors the management of organisations in running their businesses. Corporate governance is normally divided into two categories, that is, self and statutory. Self-regulation involves aspects of corporate governance that are difficult to legislate. The issues in this category involve the human element, ie the independence of the board of directors, the relationship with the management and appraisal of the director’s performance. Statutory regulation, on the other hand, is the framework of corporate governance that can be explained in legal terms. The legislative and regulatory rules include: 1. Duties, obligations, rights and liabilities of directors, controlling shareholders and company officers. 2. Disclosure and transparency. Today, good corporate governance is considered vital as it promotes morality...
Words: 2766 - Pages: 12
... Business Foundations BIB 1A CORPORATE GOVERNANCE “What is Corporate Governance? Why is it important for Business?” The business environment is formed of complex interrelationships among and between companies of the same industry. With the process of globalization taking place in the business community, in different countries, all around the world, good ethical practices have become almost crucial to every business transaction, and work on effectively operating in the global market. Therefore, in order to gain credibility and a good position in the international field, values such as trust, responsibility and integrity are important between transacting business corporations. Thus, laws and policies that protect the interests of companies and corporations have been put into effect due to a “standardization of the code of ethics” in the corporate world. This has led to the creation of a better attitude among business establishments, accredited on the corporate governance applied within the company. The main goal of this paper is to explain what corporate governance is, to develop its principles, mechanisms and controls, and its efficiency in the world of business. The OECD Principles of Corporate Governance states: "Corporate governance involves a set of relationships between a company’s management, its board, its shareholders and other stakeholders. Corporate governance also provides the structure through which the objectives of...
Words: 911 - Pages: 4
...and objectivity for the auditors. This essay addresses dimension of the ethics in the profession of auditing main demands for them in the profession is to assess the integrity and the ethical value of their customers or clients. This is indeed very difficult task for the auditors in practice and demands a deep and robust understanding the value of ethics, ethical infrastructure with their products. According to roger D, martin auditors face ethics issues from two perspectives among which one is well known and other being known and appreciated by the people who are familiar with auditors knowing their work and responsibility. The prospective of this is to deal among the ethical foundation of the auditing profession and to show the integrity and get appreciated with the job they do. This indicates ethics prospective as seeking within their profession on how to manage and achieve their targets with no difficulty. The other prospective, which the auditors face, is to understand and get the solution for the current and new clients. This is generally referred as an assessment, which demands a complete attention and understanding of ethics, ethical infrastructure and the solution of that infrastructure. This essay will give a complete picture on why ethics is important to the auditors and how significant is the contribution of auditors is to the effective corporate governance of large Uk companies. According to Ghazala saeed, ethics is derived from the Greek word Ethikos which defines...
Words: 1470 - Pages: 6
