Corporate Governance Essay

2368 WordsMay 9, 201210 Pages
Master of Business Administration Assignment On Course code: Course Title: Level: Semester: Date: Date: Submitted By: Submitted To: Name: Name: Roll: Lecturer, AIB Reg.No: CORPORATE GOVERNANCE INTRODUCTION/BACKGROUND INFORMATION This report will examine corporate governance failure which was centered on giant establishments such as Enron and World cons in the United States. I will present an overview of corporate scandals in Enron and World Com and proceed to the corporate governance failure as it is related to Parmalat. The corporate scandals did not only surface in the United States but occurred in other parts of the world such as Italy. Parmalat, an Italian Company was the centre of a high profile scandal which came as a surprise to many persons because of the type of system that existed in this country. The main focus of the case dealt with the financial scandal at Parmalat as one of the biggest companies in Italy. Parmalat was among the largest food based companies in the world and had a presence in a variety of product categories. Towards the end of 2002, it was revealed that the company had been reporting to fraudulent accounting practices from the late 1980s and had been in the habit of transforming large amounts of money from groups to several other overseas subsidiaries or companies owed by the Tanzi family. The scandal came to light only in December 2003, where Parmalat was not in a position to honor a bond payment that had become due, but analysts had been doubtful about the company accounting practices since 2002. Further investigation revealed that Parmalat created assets which were none existent and transferred money to its various subsidiaries around the world in a series of complicated

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