Cheap Phards Case Study

797 Words 4 Pages
Pocketing the Greens

1. Immediate Issue(s) or Problem(s):

Mr. De Guzman, and two other members of the Board of Directors of Cheap Pharma Inc. purchased for themselves the shares of stocks of Green Med that was supposed to be acquired by Cheap Pharma Inc.

The case therefore presents a conflict of interest issues involving the three members of The Board of Directors of Cheap Pharma Inc. The chaos brought about by this incident must be solved immediately so as to restore order within the organization and solve the problem on low sales.

2. Basic Issue(s) or Associated Issue(s):

“The Board of Directors should ensure the Company’s profits in meeting the appropriate interest of its shareholders and stakeholders by collectively directing the Company’s affair. “ (Board of Directors Duties and Responsibilities, www.briefygroup.co.uk)

However, due to the incident that burned down the second
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Mr. De Guzman and the other two members of the Board of Directors should pull out their shares from Green Med and invest instead to Cheap Pharma.

b. The three members of Board of Directors concern should resign from Cheap Pharma Inc.

c. Mr. De Guzman and the two members return the profits they earned from Green Med to Cheap Pharma.

5. Recommendation(s) and Implementation:

Mr. De Guzman and the other two members of the Board of Directors should pull out their shares from Green Med and invest instead to Cheap Pharma Inc. thus gaining more funds and improve its sales.

6. Monitor and Control:

Immediate implementation is set. Controlling, monitoring and evaluating is done monthly based on the sales performance of the company.

References

Batas Pamabansa Blg. 68 The Corporate Code of the Philippines

Board of Directors Duties and Responsibilities

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