...Part A: Conflict of Interest Conflict of Interest ElectroCo is a listed Company subject to Corporations Act and Listing Rules. The onus is on Company officers to act in good faith and not improperly use their position to gain an advantage for themselves or someone else. (Corporations Act 2001 Part 2D.1 s182). Attribute standard 1120 defines a conflict of interest as a person who has: * “A position of trust, has a competing professional or personal interest” * “Competing interest can make it difficult to fulfil his or her duties impartially” * “A conflict of interest exists even if no unethical or improper act results.” * A conflict of interest could impair an individual’s ability to perform his or her duties and responsibility objectively. The Contract Manager has the following conflicts: * Fails to disclose conflict of interest in tender invitation list ie brother; * Partakes in selection recommendation process whilst remaining silent about brother. * Failure to disclose conflict of interest to the CFO * Presents potential and perceived conflict with ongoing management of the service provider. WA Government Integrity Coordinating Group stresses a conflict of interest is not necessarily wrong or unethical but must be managed to ensure the interests of the organisation take preference. Personal interests such as brothers interest should not influence or be perceived to influence duty to the Company. By not disclosing the relationship...
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...| Followership in cases of conflict of interest. | By: Modupe Blessing Igbafen ABSTRACT An area is usually perceive as basic concerning the piece of followers in definitive ethics is aficionados' responses to dishonest requests by a leader (Carsten & Uhl-Bien, 2007). Followers face moral issues when leaders approach them with wrong requests, for instance, asking for that they take part in practices, which are doubtlessly beguiling. In such circumstances, supporters must settle on a decision: They can choose to stay up to the beguiling sales (e.g., by troublesome the pioneer's request, declining to join in exploitative direct or proposing alternative strategies) or they can oblige the pioneer's allure, largely getting the opportunity to be complicit with the untrustworthy behavior. This decision will apparently be connected with their emotions about follower’s relationship with pioneers, and their particular part. For followers to have the ability to stay up to a pioneer's exploitative sales, they ought not to see their followership part as reserved and obedient. Maybe, they must feel a commitment as a dynamic part in the administration process (Carsten & Uhl-Bien, 2007) INTRODUCTION. The idea of conflict of interest is more important today than any other time in recent memory. Moral sensitivities about the relationship in the middle of experts and those they serve are a wellspring of steady verbal confrontation. This book sets another standard for chip away...
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...First assignment: The case study about conflict of Interest The relationship of this case is as below: Also, it is important to knowing that: 1. The McHugh family doesn’t know that Donald Rosenthal operated a business brokerage business, and the business now has conflicts of interest towards the McHugh family. 2. The equipment of Silver’s Gym was fully depreciated and the plant was in need of costly repairs, and a brand new Johnny Z’s Gym opened up on nearby, lured over 50% of the prior membership of Silvers’ Gym away. All in all, that means buying Silver’s Gym for $600,000 is really a bad mistake for the unknowledgeable McHugh family. Questions for Discussion & Analysis 1. What are the ethical considerations involved for Donald Rosenthal, his business brokerage firm and his law firm? Donald Rosenthal is the stakeholder of Arnold, Quisling & Brutus, and at the same time, Donald Rosenthal also operates a business brokerage firm as a stakeholder. When there is a potential conflict of interest on those two entities, Donald Rosenthal will face to a dilemma to make business decisions. This dilemma will possibly affect an individual’s actions or decisions, result in lack of independence, objectivity and unethical behavior. As mention in this case, Donald Rosenthal fail to act integrity, loyalty, prudence and care to the asset management of McHugh, make unsuitable investment decision to achieve his own profit. Donald Rosenthal’s business brokerage firm has...
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...Conflict of Interest CONFLICT OF INTEREST 2 The case I found involving a conflict of interest is Kennedy v. Eldridge, 201 Cal. App. 4th 1197 (2011). This was a family law case involving an unmarried couple and their child. The dispute was over paternity, child support and custody of Calvin Kennedy-Eldridge. The parties involved were the mother, Kayla Kennedy, and father, Tyler Eldridge. The attorney representing Tyler Eldridge was Richard Eldridge. Richard is Tyler’s father, which is where the question of conflict arose. Attorney, Richard Eldridge had past client and business relations with Kennedy and her family members. Kennedy moved to disqualify Eldridge as Tyler’s attorney on the grounds he had previously represented her father in a divorce proceeding. Kennedy also claimed to have provided a declaration to Richard’s firm in connection with the divorce. Kennedy’s stepmother, whom was the adverse party in her father’s divorce was also previously employed by Eldridge’s firm and contended that he had access to confidential information to which he could potentially use against her. Eldridge opposed the motion to disqualify on the ground that Kennedy lacked standing. He argued that because she was never Richard's client, Richard owed her no duty of loyalty or confidentiality that he would breach by representing Tyler. The trial court rejected that reasoning, concluding that Kennedy had standing to bring the disqualification motion and that Richard's role as an advocate...
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...Conflicts of interest are a problem because they undermine the public’s confidence and damages people’s trust in political institutions. Conflicts of interest are when “a public official has a private or personal interest sufficient to influence the objective exercise of his or her official duties” (Smith, 2015, p.179). This brings on problems involving public honesty and justice, as well as serious abuse and conflict associated with private gain. The Problem The conflict of interest’s legislation main intention is to make it so that within our political institutions the elected politicians regulate their official power while honouring the responsibilities and do so without directing it towards their own personal or private gains (SFU, POL151, Week 6). Based on what others have suggested, I encourage you to extend this legislation in order to incorporate sections to involve municipal politicians and any heads of non-profit organizations that are in danger or already have abused their power in order to further their personal or private gains. We are all aware that elected officials...
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...a personal conflict of interest. Addressing a personal conflict of interest is not something you want to delay, avoid, or circumvent as you could be risking your reputation, your job, and, potentially, your freedom. In order to be seen as good stewards of the American taxpayer’s money, and to ensure that the public trusts the government’s decisions and how it spends money, conflicts of interest must be carefully avoided, disclosed when found, and immediately addressed. As Contracting Officers we must be cognizant not only...
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...20102004 Thi Ngoc Thuy Do When conflicts of interest between the corporations in Vietnam occur... Conflicts, disagreements between the corporations in Vietnam for two years recently happens a lot and became a frequent topic of the press. Most recent bitter controversy, which lasted between EVN and the Vietnam Post and Telecommunications Group (VNPT), the Military Telecom Corporation (Viettel) was about rental rates poles. The EVN insisted increased rents columns (VNPT and Viettel have cable) up 4-8 times caused two telecom corporations anger, loudly vowed to bury thousands more other columns to get wired . Fortunately, the urban landscape was saved when the last month February 4th; the Prime Minister issued a directive nature of arbitration: The Prime Minister asked EVN to coordinate with the telecom business for the parties same general use pole system with rents on the basis of price. "Cooperation and development for the public interest", the content indicates clearly the spirit of collaboration that EVN and telecommunications businesses to work towards. This is the first time the leaders of the government must necessarily be an indicator to solve the conflict between the groups. The corporations of the Nation are also very powerful because most, if formed, are given enormous resources with near-monopoly position in the assigned areas. So, your corporation also is important and every time there is a disagreement with the other groups, "he"...
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...could be more or less beneficial from a tax perspective to one shareholder vs another shareholder. After carefully considering all the facts and circumstances, we believe that our firm can continue to represent all the affected parties in accordance with our professional responsibilities and the terms of our arrangement letter(s). We wish to make you aware of certain considerations relating to this representation and rules governing tax practitioners require that we obtain a signed waiver of any potential conflict of interest that may arise as a result of our representation described above. Please carefully consider the following implications of our representation: * Any information obtained during joint representation of parties is not confidential as to the other jointly represented parties. Any such information may be used in providing advice to any or all of the jointly represented parties. * Because of an actual or perceived potential for conflict, we cannot advise you...
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.... Discuss the conflict that is occurring at General Hospital. In my opinion the conflict that is occurring in the General Hospital is the physicians are interested in obtaining personal benefits from representatives of pharmaceutical companies that distributes to the hospital. In most organization this is considered a conflict of interest. The physicians focus is not on their patients but on obtaining personal benefits. The Hospital pays each physician and clinician that is employed a very high salary and the pharmaceutical companies are aware that the physicians are interested in favors if they use products at the hospital. This problem has caused representatives of the pharmaceutical companies to easily get their products in the General Hospital which can sometimes be a difficult task for many pharmaceutical companies. Since the physicians have started this practice it has become a serious problem for the hospital. The ways to control the cost incurred in availing the desirable pharmaceutical resources in the Hospital are also facing some difficulties. Some pharmaceutical companies increased the prices of their products in order to provide some share to the physicians that support their company. Some professionals at the General Hospital have positive thoughts of the decision and others are and this has cause a conflict at General Hospital. 2. Discuss the conflict management styles that are evident in the case. The conflicts of interest at the Hospital is related...
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...Brian Han Ethics Case Study Issue: Was the decision to provide free yard maintenance to hospital board members ethical? Rule: A conflict of interest is a set of circumstances that creates a risk that professional judgment or actions regarding a primary interest will be unduly influenced by a secondary interest. Analysis: When the maintenance crew was ordered by the CEO to provide free services to the board of trustees, a conflict of interest occurred for the board members. The primary interests of the board of trustees are to serve the hospital, the community, and use resources responsibly. The secondary interest of accepting the services as a form of “compensation” for their unpaid time created a risk of professional judgment because the hospital’s resources were provided to the trustees for personal gain. This act could also be seen as bribery because trustees may place favor towards the CEO when making decisions such as voting. Conclusion: The decision to provide free yard maintenance to board members was unethical because by providing services to the board of trustees, a potential conflict of interest occurred. ACHE Rule: Disclose financial and other conflicts of interest. (1F) Analysis: The free yard maintenance was undisclosed because David Herrington found unexplained ratios and productivity figures in the financial reports of the maintenance department. He went to Larry Gruver who then told him the truth and claimed he had been keeping his mouth shut. This was a...
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...PR Rules 1.0 TERMINOLOGY (a) Belief actually supposed the fact in question to be true; may be inferred (b) Confirmed in writing informed consent given in writing (c) Firm/law firm 1.1COMPETENCE • Legal knowledge, skill, preparation reasonably necessary for representation • Relevant factors: o Compelexity and specialized nature of the matter o General experience of lawyere o Lawyer’s training and expeience in the field in question o Preparation and stude o Consult with lawyer of established competence • No special training needed o Newly admitted atty can be competent • Emergency situation o Assistance should be limited if atty does not have the skill ordinarily required o Limit to that reasonably necessary • Reasonable preparation • Inquiry into the analysis of the factual and legal components of the problem required • Attention and preparation determined by what is at stake o See 1.2(c) to limit scope of representation • If reaching out to other atty’s for assistance o Obtain informed consent of client- must reasonably believe the other atty’s skills will contribute to the competent/ethical representation o See 1.2, 1.4, 1.5(e), 1.6, 5.5 o Consult with client about scope of representation and allocation of responsibility • Keep aware of changes in the law and its practice 1.2 SCOPE OF REPRESNETATION AND ALLOCATION OF AUTHORITY BETWEEN CLIENT AND LAWYER • Abide by clients decisions concerning objectives o Client has ultimate authority • Consult...
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...1. Project Chariot involves a conflict of interests. Describe this conflict, who it is between, and who stand to gain or lose from this project. The conflict of interest exists between the shareholders and the bondholders. After Project Chariot is implemented, MII will be of low debt level and HMC will be with high debt. The original bondholders will be tied to risky real estate assets with uncertain appreciation and expected income. Shareholders will gain and bondholders will lose, since splitting the company in two will give shareholders the business upside and bondholders the real-estate downside. 2. In the lecture, we saw a number of different conflicts of interest. Which of these is this project most similar to? The risk that Project Chariot was involved in included “wealth transfer” and “risk shifting”. Under “wealth transfer” risk, the overall wealth of the company would be transferred to the equity holders from the bondholders. The restructure would leave the bondholders with downgraded securities, which diluted the value of the existing bond. Under “risk shifting” risk, equity holders would own a call option on the combined value of HMC and MII. Equity investors will benefit from higher volatility of the business while debt holders will face larger risk, especially in the situation of HMC where financial leverage was high and interest coverage was low. The management team would have the incentive to undertake more risky projects and harm the bondholders even...
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...Concepts and Obligation vs Partnership Relations P.6 Fiduciary Concepts and Obligation vs Corporate Relations 1. Directors P.8 2. Promoters P.11 Conclusions P.13 Bibliography P.14 The Basic Concept of Fiduciary Fiduciary, under oxford’s dictionaries’ definition, is trustee who is given control or powers of administration of property in trust with a legal obligation to administer the beneficiary’s interest, and the Cambridge dictionary defines “relating to the responsibility to look after someone else's money in a correct way”. It is obvious that the fiduciary concept involves the element of mutual trust and confidence: the property or interest of the beneficiary which relied on the protection of the trustee, a correct way arise an obligation that the behavior is monitored by avoiding any equitable breaches. Besides, it also presumes that not only the beneficiary but the trustee’s benefit is also protected, the beneficiary have to keep his promise of the trustees’ interest when the duty is...
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...powers are exercised on behalf of others who are being in a position of dependence. In this case, directors of Delima Enterprise Sdn Bhd have fiduciary duties to the shareholders and stakeholders of the company. In addition, they also control property in which others have an interest. According to Section 132(1) of Companies Act 1965, a director shall at all times act honestly and use reasonable diligence in the discharge of the duties of his office. The directors have the following duties as being in fiduciary position: a. Duty to exercise power in good faith and in the interest of the company. b. Duty to avoid conflict of interest. c. Duty to exercise power for the proper purpose. a. Duty to exercise power in good faith and in the interest of company The directors of a company must exercise their powers in good faith and in the best interest of the company as a whole. It means that, directors of the company must act in the interest of the shareholders as a collective group of the company and not for their own interest. Thus, the important factor that must be taken into consideration when directors exercise their powers is for the best interest of the company. However, if anyone else’s interest had been given priority, the directors are in breach of their duty to the company. In accordance to the case, the auditor had found that there were several personal...
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...study? The main ethical issue seems to be related to the last paragraph and whether or not the board of directors can use their position on the board of the Energy Cooperative for personal gains by stating "I am calling as director of the Energy Cooperative" -the board of directors are self employed consultants with no allegiance (duty) to any particular company. Each director signed something to this effect. Therefore, the ethical issue is: Is this a conflict of interest, where the board of directors would be using their positions for personal gains? Or, since they have signed a statement to the effect that they have no duty to any particular company, does this negate the conflict of interest? In other words, the members of the broad directors would be using their position to gain new clients if when calling their personal potential clients, they would be able to state," I am calling as director of the Energy Cooperative." To support this, taken from one Code of Ethics for a Board of Director developed to avoid conflicts of interest: "Directors may not: (a) take for themselves opportunities that are discovered through the use of Company property or information or through the director's position; (b) use the Company's property or information or the director's position for personal gain; or (c) compete with the Company, directly or indirectly, for business opportunities that the Company is pursuing" (http://www.airproducts.com/Responsibility/Governance/Code_of_Conduct/BoardCodeofConduct/directors...
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