Final Paper on Bw Resources Corporation

1015 WordsJul 30, 20135 Pages
I. Introduction At the apex of stock market, much importance and approach was given to corporate governance in 1990. Companies tend to overlook corporate governance in a market where the economy is progressing. However, the significance of good governance becomes clearer when the market collapses. Companies having efficient board of directors can start to flourish during difficult times. The stock exchange is the icon of free market where prices are determined solely by of supply and demand and transactions are carried out on arms-length basis. But as the scandal shows, market performance is only as good as the quality of institutions within and outside the market. In this case, the interaction of anachronistic market institutions and…show more content…
Areas of Consideration Possible Causes * Greedy attempt to give legal control of gambling funds to a favored gambling friend. * Management’s desire to project a false picture of performance with the aim of driving up the value of the corporation in a competitive global market. * Perpetrated for the benefit of Estrada and members of his family, combined elements of political corruption and financial fraud or market manipulation. * Poor regulatory framework that governs the market. IV. Alternative Courses of Action * Efficient regulation and monitoring of PSE and SEC * Thorough investigation by the government without regular time interval * Transparent presentation of financial status of publicly listed companies * Neglect the problem IV. Decision/Recommendation/Best Solution The best solution to the problem would be for the government to set tighter rules and regulations regarding the monitoring of PSE and SEC. Corporate governance is needed to make corporate managements more accountable, and their auditors more accurate. V. Implementation The Philippine SEC, as a principal player in matters of corporate governance should effectively implement the Code of Corporate Governance, under resolution no. 135 dated April 4, 2002. The code is now effective and must be followed under pain of penalty. The Code aims to

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