Corporate law

Corporate Governance is a term that broadly defines a business organization laws, rules, or process by which the company operates. Majority of business companies has been under the belief that organizations are to excel in profits. According to Bethel (2012),” Many of the obligations to stakeholder interest have been institutionalized in legislation that provides incentives for responsible conduct.” It was stated, that General Motors, and Chrysler failed to understand customer needs, employee…

The government might be a significant external stakeholder in a business because of its power to introduce new laws and regulations, or amend existing laws. Local communities In some cases, local communities might be stakeholders in a business organization, especially when the organization is a major employer in the area and the local economy depends on the work and business activity…

had no right to use corporate money that rightfully belonged to all the…

In the case of the American Red Cross as mentioned in both questions, I believe that corporate greed and issues of non-caring presidents, leaders and those in high ranking positions was the primary reason for the lack of confidence we have with ARC then and now (Thorne, 2011). The practice of paying leaders for job done poorly continues to exist in American with many companies and ARC is not exempt. This issue with this case is that it was done not only for Bernadine Healy given 1.9 million in…

sure companies were following proper accounting reporting and standards. This act was successful because it enabled better interactions between auditors, corporate boards and executives. Also, it helped make sure that CEO’s and CFO’s made sure to document in writing of any financial disclosures, in order to make sure that they agreed with the law and were ethical. This practice helped make sure companies have strong and effective internal controls that would help remove any fraudulent and poor…

operates in as required by the laws of each state. • CONVENIENCE/BURDEN – The convenience of a Corporation is its ability to raise money by simply selling shares. The burden of the Corporation is its complex reporting and double taxation. S-CORPORATION • LIABILITY – The liability of an S Corporation is similar to the C Corporation. It is limited to shareholder investment in the same way. However, it is also subject to the “Piercing of the Corporate Veil”. • …

Securities are investment products, which represents small fractional rights over a business enterprise or a pool of assets. Business enterprises and corporate entities use securities as a tool to raise capital. Primarily, securities provide their holders with either participatory rights in the earnings and management of the business enterprise or promised fixed returns over the value of investment made through purchase of securities. Securities with participatory rights are called equity…

After the Enron debacle and the WorldCom disaster, Congress decided to enact legislation that would help to protect investors and improve the accuracy of corporate financial statements. The new legislation would be called the Sarbanes-Oxley Act (SOX). This legislation was a major turning point at the time it was passed. This gave investors renewed confidence and made many corporations angry due to the excessive compliance costs. With the new legislation in place many people thought that this…

investigation by the United States Committee on Homeland Security and Government Affairs. The investigation refers to a hearing regarding “Offshore Profit Shifting and U.S. Tax Codes” that explains how some U.S.-based MNCs are able to evade paying the U.S. corporate tax rate of 35% on all global…

Required by the 2010 Dodd-Frank financial law, the CEO pay-ratio rule emerged as a major flash point because it tied corporate disclosure policy to divisive political debates about income inequality and executive pay. It wasn’t until the Securities and Exchange Commission last Wednesday, August 5, 2015, voted 3-2 to approve the measure, with the panel’s two Republican members opposing it, that the rule finally has come to be. Now companies must start disclosing the pay gap between their top boss…