Enron

The Board of Directors. With respect to the issues that are the subject of this investigation, the Board of Directors failed, in our judgment, in its oversight duties. This had serious consequences for Enron, its employees, and its shareholders. The Board of Directors approved the arrangements that allowed the Companys old-timer financial officer to serve as general collaborationist in partnerships that participated in signifi arset financial deeds with Enron. As famous earlier, the deuce members of the Special Investigative turn overtee who have participated in this surveil of the Boards actions believe this decision was fundamentally flawed. The Board well underestimated the severity of the conflict and overestimated the degree to which management controls and procedures could contain the problem. afterwards having pass a conflict of interest creating as ofttimes fortune as this one, the Board had an obligation to give overcareful charge to the executions that f ollowed. It failed to do this. It hind endnot be faulted for the various instances in which it was battlefield denied important information concerning certain of the executions in question. However, it can and should be faulted for failing to demand more information, and for failing to canvass and understand the information that did come to it.

The Board authorized the Rhythms deed and three of the Raptor transactions. It appears that many of its members did not understand those transactions-the economic rationale, the consequences, and the risks. Nor does it appear that they reacted to warning signs in those transactions as they wer e presented, including the bitterness to t! he Finance commissioning in May 2000 that the proposed Raptor transaction raised a risk of accounting scrutiny. We do note, however, that the Committee was told that Andersen was comfortable with the transaction. As complex as the transactions were, the fundament of Fastows conflict of interest demanded that the Board gain a weaken understanding of the LJM...If you want to get a full essay, commit it on our website: BestEssayCheap.com

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