Title Page Number
Executive Summary ...........2
Introduction..............3
What is corporate governance...............4
Overview of CLERP 9............6
Brief Overview of case..........6
Decision on the case............8
Recommendations for possible reforms.........10
Directors duties............15
Conclusion...............18
References .............19
Executive Summary:
HIH corp. was going through a major crisis and directors tried to manipulate the market and tried several last ditch efforts to avoid the crisis, but because of several reasons crashed and resulted into a loss of billions of dollars of small investors and resulted into various businesses shutting shop to avoid litigation because their insurance provider had collapsed, thus resulting in many more billions of combined loss of the stake holders. The resulting evolution in corporate governance principles governing corporate have made disclosures and managing companies by directors more effective and legal reforms like CLERP 9 and many changes in directors duties and the way courts see the actions of directors have undergone a change.
Cathay Pacific Boeing 747-267B; VR-HIH@ZRH, Octobe...
Sydney Hih
HIH Insurance corporate logoThe directors who were responsible were punished and rightly so as to set a deterrent for other directors managing corporate of dire consequences if they fail to effectively install proper corporate governance principles in their companies.
Introduction:
In the recent history all over the world there have been many corporate collapses all around the world. The most famous of these corporate collapses were of Enron Corporation in US, One Tel and HIH insurance in Australia. The company taken for this case study is HIH insurance this case is famous as ASIC v Adler. The three directors of HIH Insurance Ltd were found to have breached section 180(1). Until its collapse HIH insurance Ltd was the second largest general insurance company. ASIC instituted proceedings against three directors of HIH insurance Ltd these directors were Rodney Adler, Raymond Williams and Dominic Fodera. ASIC alleged these three directors for breaching directors' duties including...