1 Satyam Scam in the Contemporary Corporate World: A Case Study in Indian Perspective Introduction Satyam Computer Services Ltd was founded in 1987 by B.Ramalinga Raju. The company offers information technology (IT) services spanning various sectors, and is listed on the New York Stock Exchange and Euronext.Satyam's network covers 67 countries across six continents. The company employs 40,000 IT professionals across development centers in India, the United States, the United Kingdom, the United
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Ltd v. FAI Insurances Ltd P3.20 * Defensive actions during hostile takeover – although the directors acted honestly and in good faith they exceeded their power and used their power for an improper purpose. * Company funds being used by directors to conduct re-election campaigns Aberdeen Ry v. Blaikie P3.23 * Contract between the company and a partnership, of which one of the directors was a partner, was held to be void at the instance of the company, notwithstanding that its terms
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main business are trading and supplying related products including manpower supplies to the oil and gas industries. The enterprise was incorporated in 2004 as Delima Enterprise Sdn Bhd with En. Zayed and his wife, Puan Hashimah as the controlling directors and two principal shareholders. This case is about Delima Enterprise which wants to make banking facilities from Malayan Banking Berhad and CIMB Bank Berhad. The banks required company’s Audited Financial Statements for the last two years. From the
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[that] results from the manifestation of consent by one person to another that the other shall act in his [or her] behalf and subject to his [or her] control, and consent by the other so to act.” When used as a noun, it refers to a person having a duty created by his or her undertaking to act primarily for another’s benefi t in matters connected with the undertaking. When used as an adjective, as in the phrase fi duciary relationship, it means that the relationship involves trust and confi dence
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company directors’ responsibilities? A director of a company oversees a company on the behalf of the shareholders of the company. It is under the law stated in The Corporations Act 2001 s198A (1), “the business of the company is to be managed by or under the direction of the directors. All directors have a fundamental legal duties and responsibilities (Australian Institute of Company Directors (AICD), n.d.). A public company must have at least 3 directors (not counting alternate directors). At least
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DIRECTOR OF A COMPANY: Section 252 provides that every public company must have at least 3 directors and every private company must have at least 2 directors. Subject to the minimum number of directors a company should have, the articles of a company may prescribe the maximum and the minimum number of directors for its board of directors. A company in a general meeting may by ordinary resolution increase or reduce the number of its directors within the limits fixed in that behalf by its article
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1981 by Encik Zayed. It conducted trading and supplying related products including manpower supplies to the oil and gas industries. The husband and wife which are Encik Zayed and Puan Hashimah were the two principal shareholders and controlling directors for the company. The company expands into provision of engineering services as part of their business diversification and expansion plans. The company had maintained a very lean organization with basic functional positions. DESB employed their own
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system and not well organized. There were abuses of power breach of directors’ fiduciary duties in the business itself. The definition of fiduciary duty is a legal obligation of one party to act in the best interest of another. The obligated party is typically a fiduciary that is someone entrusted with the care of money and property.. In this case, there are abuses of power by management and breach of fiduciary on the part of directors. A fiduciary obligation exists whenever the relationship with
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Understanding the Behavior of Nonprofit Boards of Directors: A Theory-Based Approach What are Nonprofit Boards of Directors? When thinking about Nonprofit Board of Directors, you tend to think of a group of people sitting on a panel telling the owner of a company what’s best for their company. However, there are different behaviors being displayed amongst Nonprofit Board of Directors and according to (Miller-Millesen, 2003) agency theory, resource dependence theory, and institutional
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1.0 Summary This case is about an enterprise founded by family members and later was incorporated as Sdn Bhd. The shareholders are mainly the directors of husband and wife who involved in the management of the company. It was July, 2006 when Encik Zayed engaged the external Auditor Aziz & Co (Chartered Accountant) introduced by his friend to perform the statutory audit for the period of 2003 to 2006. That was the first audit experience for Encik Zayed and Puan Hashimah and it was a difficult
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