Role Of Directors In Corporate Governance
Question No. 1 Comment on the role of directors in corporate governance and how they are the powerful instrument in governance? Directors or the board of directors have a lot of roles in a company due to which they are considered a powerful instrument in governance. Directors have the following roles in a company: They are responsible for establishing a company’s vision and mission statement of the company for the present or current operations of the company as well as for any new future developments. It is upon the governors to determine the values to be spread throughout the whole company. They set company goals and policies and keep reviewing them as well. Directors establish standards and evaluate current opportunities as well …show more content…
It was formed by merger in 1985. Its predecessor was a company by the name of Northern Natural Gas which was formed in 1932 in Nebraska. In 1979, it was recognized as the main subsidiary of InterNorth.
Enron changed the way natural gas and electricity was bought and sold ad became one of the world’s dominant energy companies. By early 2001, it had become 7th largest US company and largest buyer and seller of natural gas in the United States. It was heavily involved in electronic energy trading and energy brokering. Prior to the scandal, they were named as “America’s
In November 1997, Calpers wanted to cash out of JEDI. Therefore, Enron needed 3% new partner in order to keep JEDI afloat. So, it created Chewco to buy out Calpers stake in JEDI for 383 million dollars. In order to pay 383 million dollars to Calpers, Chewco got 242 million dollars in loan from Barclay Bank which was guaranteed by Enron and got the other 132 million dollars from JEDI on credit where JEDI’s only assets were the Enron stock. Hence, Chewco still needed to get 3% of 383 million dollars from some other outside sources in order to avoid the mentioning of JEDI’s debt in Enron’s books. Enron and Chewco’s web of deceit spread even further. In the beginning quarter of the year 2000, there was an increase in the price of Enron stock held by JEDI, resulting in profits of nearly 126 million dollars for Enron. But in fall 2000, the price of Enron stock started falling and in November 2001, Enron admitted to SEC that Chewco was not totally independent of it and shortly after that, Chewco went
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