He could participate, but was not allowed to vote. He noticed that there was a strong disagreement between the auditors and management over internal controls, specifically regarding currency hedging transactions. However, no settlement was made between the two. It’s important that the auditors and management be on the same page. According to the committee’s new disclosure requirements, Jim Bond, the CFO, used hedges that exceeded actual risks without informing the board or CEO in advance, and without getting their approval. However, the committee decided not to discipline Jim. This is not a good sign if members aren’t being punished for their …show more content…
Sam Bigger went from topic to topic without ever being interrupted. Jack had some questions, but decided to figure out later through informal discussion if anyone else shared his concerns. The board needs people who will stand up and challenge Sam, but Jack is clearly not one of those people. One of the main reasons that Jack was chosen on the board was because of his turnaround experience. He noticed a major problem with the financials that he had dealt with back at Dryden. Once again, he bit his tongue and didn’t suggest anything. If Jack isn’t going to use his skills to help the board, he is basically going to be