ACC03043 – Corporate Governance Assessment 1 – Understanding Corporate Collapses - Short written answers DUE DATE: Monday, Week 3, 11:00 PM WORD LIMIT: 2x XXXXXXXXXXwords WEIGHTING: 20% All students...

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ACC03043 – Corporate Governance Assessment 1 – Understanding Corporate Collapses - Short written answers DUE DATE: Monday, Week 3, 11:00 PM WORD LIMIT: 2x400-600 words WEIGHTING: 20% All students are required to submit this assessment via the ACC03043 SCU Blackboard learning site. Hard copy and email submissions will not be accepted and late submission penalties will apply to assignments that are not submitted on time via the specified Blackboard site. The following questions are all based on chapter 1 of the textbook. There are two questions associated with this assessment. Answer both questions. Understanding Corporate Collapses 1. Research the three cases of early corporate collapses in Australia mentioned in the textbook on page 11: Alan Bond, Laurie Connell of Rothwells and the Girvan Corporation. Prepare a brief report outlining the case(s). What was the underlying reason for the failure? Would today's corporate governance codes, rules and regulations have prevented these outcomes? (400-600 words / 10 marks) 2. Explore the collapse of financial institutions mentioned in Chapter 1 on page 17 of the textbook. Prepare a brief report on corporate governance implications stemming from the global financial crisis. (400-600 words / 10 marks) You are encouraged to undertake further research about the Australian collapses as well as about the financial institutions to gain a deeper understanding of the case (e.g. board structure, board behaviour, etc.) - trustworthy non- academic sources are acceptable in this context. Following issues need to be considered: • For this assessment task, there is no right or wrong answer. It all depends on your analysis and justification for the answers put forward. You may not have all the information, and the limit to the above word count might be challenging, but this assignment will train you to write quality management reports. • Please answer the two questions individually (i.e. one by one), observing Harvard referencing style and a clear and logical structure, along with the ability to express yourself clearly and succinctly. This is not a report, so no executive summary, introduction or conclusion is needed. Just answer the questions directly one by one. • Your arguments have to be based on concepts and tools discussed in the topics of this unit and must be supported through direct reference to (academic) literature (recent peer-reviewed journals preferred). Your answers will be assessed based on your ability to develop arguments supported by relevant and valid sources (please also refer to marking criteria). You are expected to use at least 2 academic sources per question (excluding the textbook) to support your viewpoints. All sources must be properly referenced. • In addition to the academic references, and in case you want or need additional information about the cases, feel free to engage with non-academic literature, i.e. in order to gain a broader and more detailed understanding of the cases, you can mention and use information and facts from valid newspapers, magazines and/or official reports. Again, all sources must be properly referenced. • Assignments strictly have to be within the word limit (- / + 10 %) • Where cases of plagiarism are found, students will be sanctioned in accordance with university policy (see Blackboard for more information). • All students will be required to submit their assessments via the ACC03043 SCU Blackboard learning site, utilising a Turnitin assignment link. Students will be able to amend and resubmit their assessment following a Turnitin review (ie. multiple submissions are allowed up until the due date). A detailed marking rubric (i.e. marking criteria) will be made available on the ACC03043 Blackboard site (see Assessment Tasks and Submission). END OF ASSIGNMENT
Answered Same DayJul 21, 2021ACC03043Southern Cross University

Answer To: ACC03043 – Corporate Governance Assessment 1 – Understanding Corporate Collapses - Short written...

Azra S answered on Jul 22 2021
157 Votes
Understanding Corporate Collapses
1. Research the three cases of early corporate collapses in Australia mentioned in the textbook on page 11: Alan Bond, Laurie Connell of Rothwells and the Girvan Corporation. Prepare a brief report outlining the ca
se(s). What was the underlying reason for the failure? Would today's corporate governance codes, rules and regulations have prevented these outcomes? (400-600 words / 10 marks)
Corporate governance and Corporate collapses
Corporate collapse of Alan Bond, Laurie Connell and Girvan Corps
In Australia, prominent cases of corporate collapse occurred involving three entities in the 1980s. These entities were found to be associated with suspicious governance practices eventually resulting in their organisations to collapse. Alan Bond, Laurie Connell of Rothwells and the Girvan Corporation engaged in providing loans to small businesses that were considered risky.
Not only were these businesses already failing, they had little to no back-up and were nearly doomed. This exposed their companies to imminent danger, but they so tampered with finances that the board of directors never found out what they were doing. The stock-market crashed eventually and these financial institutions failed miserably. Laurie Connell and Alan Bond had made massive drawings in order to stay safe when the crash came about without the knowledge of the directors. Both were convicted and sent to jail.
The primary reason for the failure of these companies was their failed corporate governance. These individuals who were nearly solely in power abused it and tampered with the finances secretly. This eventually led to the collapse of their companies to which they owed no ethical or financial loyalty.
Causes of failure
The failure of these financial institutions can be attributed to several reasons. These include- 1- Lack of ethical obligation- These governing bodies of these institutions weren’t ethically obligated and hence their profits justified everything to them.
2- Lack of verification- Since the board of directors allowed completely autonomy to the governing body, there was no means of verifying the information that was being relayed to them.
3- Fraudulent corporate financial reporting- Fraudulent reporting kept the board of directors in the dark. So, until the market crash, the board had no idea what was going on in these institutions.
Corporate governance codes, policies and procedures
After the market crash like that of the...
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