Corporate law

There were many reasons for the downfall of Enron, corporate governance being one of the main. The Corporate Governance Code issued by the Financial Reporting Council (2010) defines corporate governance as ‘the system by which companies are directed and controlled’. Boards of directors are responsible for the governance of their companies. The shareholders’ role in governance is to appoint the directors and the auditors and to satisfy themselves that an appropriate governance structure is in…

tool that allows a company financially to lower its tax liabilities by obtaining a legal foreign address. One of the highest corporate income tax rate is represented by the United States system. Many companies seek for effective ways to decrease their tax bills without break U.S laws. Obtaining a new legal address abroad, it is a current and favored strategy to lower corporate tax rates. In other words, change a company address to another country with the purpose to lower its tax rates is a…

THE IDENTIFIED CORPORATE GOVERNANCE BREACHES Based on the study and analysis of the case, it is discovered that the breaches including but not limited to the following have occurred in HIH case:- 5.1 breaches of directorial duties, or duties as an officer Three directors…

Following the disastrous impact of a number of corporate and accounting scandals, especially those involving major corporations such as Worldcom and Enron, U.S Congress decided to pass the Sarbanes-Oxley Act of 2002 (SOX). This had come not long after investors and companies lost billions of dollars due to the result of such corruption, thus having a negative impact on financial markets and investor trust. The enactment of SOX set forth new standards and provisions which sought to improve the…

Company Responsibility Corporate governance looks at the organizations, privileges, and accountabilities of those in charge of a company. Companies who possess effective corporate governance entails mechanisms that ensure the company executives respect the privileges and welfares of the company’s shareholders, along with holding the shareholders responsible for acting sensibly in regards to the protection, generation, and distribution of the wealth invested in the company (Filatotchev &…

about is the economy. Donald Trump’s proposed policies concerning the economy are superb, which he will cut the corporate tax rate down from 35% to 15%. Trump’s corporate tax rate reduction, “Trump wants to cut the corporate income tax rate by more than half, to 15%, and make that available to the half of all US businesses that are not in corporate form” (Sheppard). Cutting the corporate tax rate will relieve businesses from strenuous financial problems and will encourage investment in the…

Walgreens corporate structure consists of ten separate divisions. Marketing manages all product and brand marketing for the whole company (Tucker-McLaughlin, n.d.). IT and engineering maintain all hardware and software along with developing projects to advance the company technologically (Tucker-McLaughlin, n.d.). The facilities and real estate team analyze the store location and building sites for the expansion (Tucker-McLaughlin, n.d.). Other departments include the corporate management team,…

have an advantage when it comes to raising capital for their business - the ability to raise funds through the sale of stock. Corporate Tax Treatment. Corporations file taxes separately from their owners. Owners of a corporation only pay taxes on corporate profits paid to them in the form of salaries, bonuses, and dividends, but any additional profits are awarded a corporate tax rate, which is usually lower than a personal income tax…

position of the US and UK rules/codes of Corporate Governance relating to the roles of CEO and Chairman. (10%) In the U.S., corporate governance is determined predominantly by legislation in the form of the Sarbanes-Oxley Act of 2002 ("SOX") and detailed regulations which SOX required the Securities and Exchange Commission ("SEC"), New York Stock Exchange ("NYSE") and NASDAQ to draw up. In UK there is the combined code followed and named as The UK Corporate Governance Code (Weil, Gotshal &…

Act honestly responsible to duty 2. Knowing the issue and understand the company issue 3. Solve issue occurred and preventing company from incurring debts 4. The directors are preventing the company from insolvent trading. Corporations Act Part 9.4B provides for two types of penal consequences, civil penalties and criminal penalties. Two kinds of civil penalties are prescribed: a pecuniary penalty of up to $200,000 and/or an order banning a person from managing a corporation…