THE P1 TIMES www.lsbf.org.uk THE ACCA’S FAVOURITE NEWSPAPER (probably) - Since 2007 P1 STUDENT PASSES EXAM !! By PAUL MERISON Blank quits Lloyds By PAUL MERISON Sir Victor Blank has retired from Lloyds Banking Group.Blank was Chairman of Lloyds, but “went before he was sacked”, according to Lloyds insiders. Blank had been heavily criticised for being the main person behind the takeover of HBOS, which had far worse losses than Lloyds predicted. He is now being held accountable for this decision. Win Bischoff has now taken over as Chairman. No doubt the Nominations Committee began their succession planning process some time ago, as they must have known Mr. Blank was likely to go. P1 student Fred Goodwin has passed his …show more content…
Investors Raise Their Voices There was a time when big shareholders, typically institutions, were very quiet investors who let Boards get on with running companies with barely a murmur of complaint. But not any more it seems. In recent months, many companies have heard their biggest shareholders complaining, both at the AGM and beforehand in the Press, about everything from strategy to director pay issues. Whilst the biggest shareholders often have small percentage holdings they are getting listened to more and more. They have found ways to increase the volume of their “stakeholder voice” by using the Press, or by voicing their concerns through an umbrella body such as the Association of British Insurers. The ABI’s members control a large percentage of the overall stock market, meaning that companies are far more likely to have to listen. Why are they suddenly shouting? A mixture of poor performance, the institution’s own investors shouting at them, and a belief that better governance leads to improved profits and a better share price. Shut up! Or Else!!! It is reported that the NEDs at RBS warned the Chairman and CEO that the Bank was exposed to too much risk – but were threatened with the sack if they kept being disruptive! Hard to be independent NEDs when there is an intimidation threat! 3 Date today 14/06/10 NEWS Tell SID! In 2007, Cadburys Chairman Sir John Sunderland unexpectedly announced his retirement, after a series of meetings between
On 27 January 2009 Strathfield Group limited suffered from a financial crisis and moved into voluntary administration by ending its long run on stock market owing $25 million to the bank (Sharma & Sainsbury, Strathfield goes into admin, 2009)
Both were pushing to appoint their own administrators. The banks wanted to appoint McGrath Nicol
The emergency rescue of the Royal Bank of Scotland in 2008 has cost the UK government thus the British taxpayer a huge amount of money. Many people are upset about the high bonuses the RBS management board have received, both because of the outrageously high amount and because the performance of the bank on the long-term was not good at all.
The ASX Corporate Governance Council defines the ‘corporate governance’ as the framework of rules, relationships, systems and processes within and by which authority is exercised and controlled within corporations (Corporate Governance Principles and Recommendations, 2014). The term “failure” of a corporate can be described as “Insolvency” in Australia (Michaela Rankin, 2012). And the reasons for corporate failure can be grouped into six categories: 1. Poor strategic decisions. 2. Greed and the desire for power. 3. Overexpansion and ill-judged acquisitions. 4. Dominant CEOs. 5. Failure of internal controls 6. Ineffective boards(Michaela Rankin, 2012).
The downfall of Tesco has resulted in their chief executive, Philip Clarke stepping down and their UK chief executive Chris Bush, UK finance director Carl Rogberg, UK food commercial director John Scouler and food sourcing director Matt Simister all being suspended after an investigation into how it had happened. Tesco overstating their profits has affected them
John’s departure was imminent at the end of the last financial year, when material adjustments to profit were made during the audit of the accounts. The announcement resulted in a 20% decline in shareholder value overnight. There’s now a broad recognition that things have to change.
There are three internal and one external governance mechanisms used for owners to govern managers to ensure they comply with their responsibility to satisfy stakeholders and shareholder’s needs. First, ownership concentration is stated as the number of large-block shareholders and the total percentage of the shares they own (Hitt, Ireland, Hoskisson, 2017, p. 317). Second, the board of directors which are elected by the shareholders. Their primary duty is to act in the owner’s best interest and to monitor and control the businesses top-level managers (Hitt, Ireland, Hoskisson, 2017, p. 319). Third, is the
Conclusion: Overall Duncan has done a fantastic job bringing the bank to place that other local banks model themselves after, however during the road to this great domain he failed to look at the potential costs associated with raises over time and merit increases staying reasonable. While others were meeting some marks for their level of service the tellers were going to always have an advantage because they are the core of the bank because the customers interact with them more regularly, the customers get to know them, making it easier to be more productive and positive, hence giving them an incentive to do great work every day.
Q : 1 What is your evaluation of Immelt’s new organic growth strategy? Why change GE’s existing successful strategy? Is it reasonable to expect that a $125 billion global giant can significantly and consistently outperform the underlying economic growth rate?
It is interesting to see that on all fronts women are being paid less due to the perceived thought being able to have children and will follow their husbands. According to Clair Miller, even women without children are paid less due to the company believe they will give up job opportunities due to being married (2017). It is not appropriate to base someone’s pay due to the fact they may or may not one day have children. Especially in today’s time where daycare and flexible work schedule are becoming increasingly popular. The discrepancy between women and men when it comes to saving is interesting in that only 41% of women feel satisfied with her saving while 58 % of men feel satisfied (Miller, 2017). I believe this gape is linked to women being
So investors should worry that Alibaba wouldn’t be share a significant amount of the value created with them over the time. Actually, lots of global public companies have a large shareholder with a lock on control, but normally controlling shareholders often won a substantial portion of the equity capital that provides them with beneficial incentives. In the case of Alibaba, investors need to worry about the relatively small stake held by the members of the controlling Alibaba Partnership (Bebchuk, 2014). All those factors shows Alibaba’s structure does not provide adequate protections to public investors. So investors expect Alibaba changes its Corporate Governance strategy, for instance Jack Ma need to reduce his stake in Alibaba within 5 years, including by having shares in Alibaba granted to Alibaba employees. It also should give more power to the shareholder’s to guarantee shareholder’s right which will seeks to allay investor concerns. If Alibaba change their strategy, giving its stockholders’ strong confidence, the business success of Alibaba might be large enough to make up for the costs of diversions and give public investors with good returns on their investment in the
Corporate governance is founded on laws, policies, processes, systems and behaviours and together they provide a system for the way in which an organisation is directed, administered and controlled. As such, the Charity Commission, (the ‘Commission’) recognises that to deliver its strategic aims, objectives and priorities successfully, it needs sound corporate governance arrangements in place, (Charity Commission UK). Corporate Governance is not - or should not be - about debate and discussion on executive compensation, shareholder protection, legislation and so on. In recent times, corporate governance became not only a subject of fierce debate and public outcry, but also, as a result of this and arising legislation, a subject which been wearisome for many company directors. The hidden gem here is to a great
Companies better understand how good corporate governance contributes to their competitiveness. Investors – especially collective investment institutions and pension funds acting in a fiduciary capacity – realise they have a role to play in ensuring good corporate governance practices, thereby underpinning the value of their investments. In today’s economies, interest in corporate governance goes beyond that of shareholders in the performance of individual companies. As companies play a pivotal role in our economies and we rely increasingly on private sector institutions to manage personal savings and secure retirement incomes, good corporate governance is important to broad and growing segments of the population. The review of the Principles was undertaken by the OECD Steering Group on Corporate Governance under a mandate from OECD Ministers in 2002. The review was supported by a comprehensive survey of how member countries addressed the different corporate governance challenges they faced. It also drew on experiences in economies outside the OECD area where the OECD, in co-operation with the World Bank and other sponsors,
The subjugation of Antoinette is somewhat troublesome. Her fury nature cannot be submitted to Victorian civility so easily. As we know the panoptic nature of social power makes it inevitable for woman to submit herself to it. Womanhood is synonymous with a kind of childlike dependence on the nearest man. Indeed, it is this dependence that precipitates the demise Antoinette. She marries white Englishman in the hope of social acceptability and stability, but the man betray and abandon her. The hesitation of Antoinette to marry Rochester is the evidence that how tormented she is feeling while leaving her true nature at the behest of the social power. She is aware of the consequences of her decision. Therefore, she inform Rochester about her apprehensions of being “afraid of what may happen” (Rhys
Managers and shareholders are the utmost contributors of these conflicts, hence affecting the entire structural organization of a company, its managerial system and eventually to the company's societal responsibility. A corporation is well organized with stipulated division of responsibilities among the arms of the organizational structure, shareholders, directors, managers and corporate officers. However, conflicts between managers in most firms and shareholders have brought about agency problems. Shares and their trade have seen many companies rise to big investments. Shareholders keep the companies running