Choose a embodied scandal that relates to corporate governance and answer the following related question:
(i) apologise the nature of the selected corporate scandal and among reasons that lead to its failure.
Introduction
lodge Background
Tyco worldwide Ltd. is a highly diversified global manufacturing follow incorporated in Switzerland, with United States operational headquarters in Princeton, New Jersey (Tyco International (US) Inc.). It is composed of five major(ip) business segments: ADT Worldwide, Fire Protection Services, Safety Products, Flow project and Electrical and Metal Products. Tyco International grew so big, that it has claimed over 40 major acquisition and many minor acquisitions since 1986. (Obringer, 2010)
Nature of Tyco International Scandal
However, the situation changed when there is a fraud happened in Tyco International. fit to the Tyco Fraud Information Center, accounting errors were found by an knowledgeable investigation. However, there was no systematic fraud problem at Tyco. This has drawn widespread attention because it involved billions of dollars.
Tycos ex-Chief administrator Officer (CEO) Dennis Kozlowski, ex-Chief Financial Officer (CFO) turn back Swartz, and ex-General Counsel Mark Belnick were accused of receiving interest-free or very low interest loans for face-to-face purposes that were never approved by the Tyco board or repaid. more or less of these loans were from the Key Employee Loan program (KEL) the company offered. Also, they were accused of sell their company stock without telling investors, which is a requirement on a lower floor Securities and Exchange Commission (SEC) rules. Moreover, Koslowski, Swartz, and Belnick also theft $600 million dollars from Tyco through unauthorized bonuses, loans and extravagant company spending. Besides that, the disclosure of the Tyco executive compensation arising from loan-forgiveness program is not made in the monetary statements. In order to protect Kozlowski...If you want to get a full essay, order it on our website: Ordercustompaper.com
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