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 headland financial officer to serve as general colleague in partnerships that participated in signifi arset financial deeds with Enron. As tell earlier, the deuce members of the Special Investigative intrusttee who have participated in this surveil of the Boards actions believe this decision was fundamentally flawed. The Board substantially underestimated the severity of the conflict and overestimated the degree to which management controls and procedures could contain the problem. later on having pass a conflict of interest creating as frequently fortune as this one, the Board had an obligation to give paying attention charge to the executions that followed. It failed to do this. It buttocksnot be faulted for the various instances in which it was bold denied important information concerning certain of the effects in question. However, it can and should be faulted for failing to demand more information, and for failing to poke into and understand the information that did come to it. The Board authorized the Rhythms work and three of the Raptor transactions. It appears that many of its members did not understand those transactions-the economical rationale, the consequences, and the risks. Nor does it appear that they reacted to warning signs in those transactions as they were presented, including the contestation to the Finance committal 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 insane asylum of Fastows conflict of interest demande d that the Board gain a strike understandi! ng of the LJM...If you want to get a full essay, commit it on our website: BestEssayCheap.com

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