On Monday‚ September 22‚ 2014‚ a Darden Restaurant shareholder filed a suit against the Darden board of directors on grounds that the sale of Darden’s Red Lobster division was harmful. The suit was filed in Florida by Teamsters Local 443 Health Services and Insurance Plan of Connecticut. This lawsuit is the second of two lawsuits that that Teamster has brought against Darden‚ the first was a suit for violating company bylaws. Teamsters alleged that Darden mislead the shareholders when it informed
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ENRON Introduction Enron was the country’s largest trader and marketer for electric and natural gas energy. Its core business was buying energy at a negotiated price and later‚ selling the energy when prices increased. As an energy broker‚ Enron provided a service by allowing producers to negotiate a certain price while Enron took the risk that prices would fall below what it bought energy. Buyers of energy also benefited because Enron could ensure the supply of energy. In 2000 Enron was listed
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governed by common law and equity and recently‚ have been codified under Part 10‚ Chapter 2 of Companies Act (CA 2006). These duties are based on the law of trusts and agency and can be broadly categorised as directors’ fiduciary duties and the duty of care and skill. The four fiduciary duties of directors are the duty to act bona fide; duty to exercise powers for a proper purpose; duty not to fetter discretion in the exercise of powers; and duty not to place oneself in a position where personal interests
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I. Agency (Chapter 1) A. Who is an Agent i. Agency Definition Agency is a fiduciary relationship which results from the manifestation of consent by one person to another that the other shall act on his behalf and subject to his control and consent by the other to so act. 1. Contractual relationship is not necessary‚ nor do either need to receive compensation 2. Agent - the one to act 3. Principal - the one for whom action is taken 4. Agency means more than mere passive permission; it involves
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Many were the factors that contributed to the fraud‚ but I believe it is possible to analyze the Satyam case under two main different perspectives. The first addresses the conditions that made possible‚ and eventually stimulated‚ the existence of the accounting fraud perpetrated from the company top management. The second one is about the issue of gaps in the company’s control framework‚ which failed miserably in identify and properly address the problems in company financial statements. Analyzing
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corporations do not have responsibilities • In fact‚ this kind of thinking can lead to the downfall of capitalism A Stakeholder Theory of the Modern Corporation by R. Edward Freeman • Managers do not have a duty to stockholders but they have a fiduciary relationship with stakeholders. o stakeholders have an interest in‚ and must
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“If [a banker] undertakes to advise he must exercise reasonable care and skill in giving the advice. He is under no obligation to advise‚ but if he takes upon himself to do so‚ he will incur liability if he does so negligently.” ’ House of Lords in Banbury v. Bank of Montreal[1] I. Introduction The issue of legal liability of banks in the provision of negligent advice is one doctrine of law that has evolved through the years. In light of current controversies hounding the UK banking
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(Richards-Gustafson‚ (n.d‚ para 1). (b) Describe the traditional view of corporations? (7mrks) Traditional view of corporations held that the shareholders or stockholders are the owners of the company‚ as such; the firm has a binding fiduciary duty to put their needs first‚ increasing value for them (Miles‚ 2011‚ para. 1). This view‚ also known as the shareholder view believed that corporations existed solely to serve the interests of shareholders. It was largely an economic view‚ with
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(13th edition) p.163: ‘Essentially a trust is imperative and a power discretionary. But the dividing line is not as clear as one would hope; for many trusts contain discretionary elements; and many powers are given to trustees who are governed by fiduciary duties in the exercise of their powers.’ McPhail v. Doulton [1971] AC 242 at 448G per Lord Wilberforce: ‘It is striking how narrow and in a sense artificial is the distinction...between trusts‚ or as the particular type of trust is called‚ trust
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Case Study Unit I Alfred Elvins Columbia Southern University The article‚ “The NYSEG Corporate Responsibility Program” (Beauchamp‚ T. L.‚ Bowie‚ N. E.‚ & Arnold‚ D. G.‚ 2009) is a writing that addresses the social responsibility program of a major energy provider in the Northeastern United States. The article discusses the implications of a corporation that has addressed
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