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 brain financial officer to serve as general associate in partnerships that participated in signifi arset financial deeds with Enron. As note earlier, the deuce members of the Special Investigative assigntee who have participated in this surveil of the Boards actions believe this decision was fundamentally flawed. The Board comfortably underestimated the severity of the conflict and overestimated the degree to which management controls and procedures could contain the problem. after having pass a conflict of interest creating as much(prenominal) fortune as this one, the Board had an obligation to give blow-by-blow charge to the executions that followe d. It failed to do this. It sessnot be faulted for the various instances in which it was theatre denied important information concerning certain of the feats in question. However, it can and should be faulted for failing to demand more information, and for failing to try out and understand the information that did come to it.

The Board authorized the Rhythms dealings and three of the Raptor transactions. It appears that many of its members did not understand those transactions-the scotch rationale, the consequences, and the risks. Nor does it appear that they reacted to warning signs in those transactions as t hey were presented, including the argument! to the Finance mission 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 relegate understanding of the LJM...If you want to get a full essay, commit it on our website: BestEssayCheap.com

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