Polaroid Corporation Case Study

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Executive Summary
Polaroid Corporation was established in 1937 by Edwin H. Land which is the former founder of this corporation. Polaroid is an American international and eyewear consumer electronics company. It is very well known with its creation of instant film cameras, which starting to be launched in the market in 1948 and be the first company to introduce such product. By the late 1980, Polaroid was vulnerable for takeover due to certain reasons which are low profit of the company, carried a small amount of debt, and have a huge potential unliquidated asset in the form of a patent infringement suit against Eastman Kodak.
Due to reason, Shamrock Holdings see this as an opportunity to take over Polaroid by firstly bought a position of a
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Transparency within an organization was very important to avoid potential conflict between the directors and shareholders. In practicing good corporate governance, the five pillars of transparency should be implemented by the BOD of Polaroid’s in other to develop effective disclosure. For the first pillar of transparency which is truthfulness, information disclosed must provide accurate description of circumstances. These mean that, the BOD should disclose the detail about ESOP to the employees and shareholders as the decision made will affect both parties. In the second pillar which is completeness, information disclosed must be sufficient and the information must include financial as well as non-financial matters. This will require the BOD to disclose the information about ESOP completely without hiding any information. For example, another motive of developing ESOP as anti-takeover defence also should be disclosed to the employees and shareholders of Polaroid’s. The third pillar which is materiality of information which requires any information disclosed by the BOD regarding ESOP should be in material such in a complete notice and not only by spoken word. For the next pillar which is timeliness, the BOD must disclose the information regarding ESOP …show more content…
This means that the internal control that set by the management will require the commitments of BOD in order to establish and maintain a control system. Relating to the case study, the BOD should play important role in order to oversee the management to avoid misleading conduct within the company and ESOP should be developed without having any conflict of interest by the directors. They supposedly should discuss more deep on ESOP and having debate and hear another opinion also one of the good practise that can be implemented by Polaroid’s BOD.
The fourth element is by monitoring the control system to ensure its running properly. By monitoring the control system, company may determine the weaknesses of its control system and restructuring its control system to be more effective. The BOD of Polaroid’s should monitor their control system and ensure all the directors together with management follow the guidelines set up by the company to ensure the BOD running smoothly and avoid misleading

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