As the title suggests, this article deals with the scam committed by Waste Management Inc. The Court found six officials of the company to be perpetrating this scandal. The reason behind this scam was said to be the stagnancy in the profit. Arthur Andersen, the auditor for the company, was also found guilty for their collusion in the fraud. The aftermath of this scam is unique which is lucidly explained by the author
This article discussed a landmark scam in the history of India famously known as the Sahara Scam. All the relevant facts and briefly the judgments passed by the SEBI, the SAT and the Hon'ble Supreme Court in the matter of Sahara company are analysed by the author. The conclusion not only provides the current status of the matter but also discusses the potential impact of frauds on the general public and finally ends the article with the potential solutions to avoid such scams in future.
HealthSouth, one of the largest healthcare services of the USA, was accused of a huge corporate accounting scandal, the infamous $2.8 billion accounting scandal which went for years, 1996 to 2002, to be precise. The founder and CEO of the company directed its employees to report highly exaggerated profits for the company to woo more investors. However, Scrushy, the CEO was acquitted of the charges of fraud, conspiracy, money laundering and violations of Sarbanes-Oxley law for corporate reporting. E&Y, the auditor for the company was also acquitted of the charges of fraud.
This article begins by defining the concept of directors, types of directors and then in great detail analyses the concept of Shadow Director. Meaning, legal status and role of shadow director is defined very clearly by way of various case laws. Ultimately the article is concluded by doing a comparative study between the law of United Kingdom and the law of India on Shadow directors.
This article focuses on the liabilities, role and functioning of a Non-Executive Director. The Article also distinguishes between a Non-Executive Director and Executive Director. The article also discusses relevant provisions and judgments to elaborate the above.
This article very lucidly covers the overview of meetings of the Board of Directors. It deals with everything a person needs to know about meetings of the directors under Companies Act, 2013. The author very clearly explains about kinds of meetings, procedure to be followed, powers of the directors during a meeting, importance of and quorum for the meetings. Various landmark judgements are also analysed apart from discussing relevant provisions.
This article covers all the nuances related to director under the Companies Act, 2013 ranging from duties, powers, functions, roles, appointment and removal. The rights of shareholders vis-a-vis rights of director are also elaborately discussed by the author. By finally concluding the article with the role of managing director, the author believes that the current corporate law is viable and therefore no alteration in the law is requisite.
This article focuses on the working and functioning of a Limited Liability Company. The Article also distinguishes between LLCs, Sole-proprietorship, a partnership and a corporation. The article goes on to elaborate meaning, types, features, merits demerits, procedure of registration of such LLCs. The less discussed concept of Unlimited Liability LLCs is also dealt with by the author.
As the title suggests, this article deals with the bankruptcy of Lehman Brothers Holdings Inc.. The major role was played by the incompetent decision making of venturing into subprime lending which led to its downfall. The aftermath of the bankruptcy is also lucidly explained by the author
Enron Scam is the biggest corporate scam in the history of the USA. The article helps in understanding the modus operandi of the scam, role of the auditor of Enron Corporation in the scam, actions taken by the SEC and the federal courts to disclose the wrongdoings and punish the offenders, aftermath of the scam and its repercussions on the whole economy. The author at the end provides valuable recommendations to prevent such scams from happening in future.
The doctrine of constructive liability is an important principle as it serves its purpose in easing business regulations. It provides security to the companies while they are dealing with the outsiders. However, this provision was seen to be doing more wrong than good, thereby, its credibility was getting reduced. For that, the doctrine of indoor management was evolved by the courts to restrict the application of this provision when the rule in dispute is internal.
The main question that this article tried to answer was whether the term promoter and shareholder is the same, or different? The two being different from each other, the difference between them was tried to be explained.
The article begins by defining One Person Company. The author states that OPC is similar to a sole proprietorship and both have similar advantages, but, to the disadvantage of sole proprietorship, it entails unlimited liability whereas in an OPC the liability is limited. The article delves into benefits, features and impact in India of OPCs.
The most prominent scam in the recent history of American economy was the AIG Accounting Scandal of 2005. The AIG was found guilty of entering into sham transactions in order to inflate the reserves and to conceal losses. It was also found guilty of misled the Insurance Department about offshore affiliates of AIG. The company was in such a position that its failure would have meant a huge defeat for the entire economy of America. Therefore, it became imperative for the government to protect this company from failing. As per the records of U.S. government, AIG was too huge a company to fail. It was given a federal loan of $85 billion to revive back as well.