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QUESTION ONEI)How the failure of the Board of directors at TFS contributed to its demiseFail to constitute the Nomination CommitteeThe company has outrightly stated that it does not have a nomination committee and sees theneed for the nomination committee. The company's regulations have per the as per the AustraliaStock Exchange (ASX) authority show need for every company to have the nominatingcommittee. A public company has many stakeholders who can have conflicting interests in thecompany. The nominating committee will assist in ensuring that the right officials are appointedwho do not have a conflicting interest. The nominating committee will also help the company inincising key personalities to resign or dies in succession.The failure to appoint the nominating committee is one of the reasons why the company hasfailed. As per the report, the management received the resignation letter from the managingdirector, Mr. Frank Wilson, on 27 March 2016. The reason for the resignation was stated, and itdid not mean to the company. Mr. Frank Wilson noted that he had received an offer with aninternational partner with enough potential to propose a change of the control transactions of thecompany board. The directors failed in their management as they failed to have a committee thatwould have saved the company from the ill motives of the outgoing directors. The suddenresignation made the company lose its value as the share price dropped significantly.Failure to have a proper written agreement with Directors and Senior ExecutivesThe rate of employees turnover at TFS (Quintus) company is alarming following theinvestigative report by Glaucus Research group. As per the report, the directors and top officershave been exiting the company without facing any charges or court penalties. The exiting of topofficials in accompany is costly to the company, and it tarnishes the company's reputation.Shockingly, the Board of directors did not put measures in place to prevent the easy exiting of itsofficers. From 2011 to the time the company is going into bankruptcy, the top eight officials hadleft the company. Suppose the Board of directors had put measures in place and enter into aformal written agreement with the employees. In that case, this could have reduced the turnoverrate, hence saving the company reputation, stock value, and any inconvenience and incidentalcosts that arise as a result of employee turnover. Also, the turnover indicates that the appointingcommittee does not do their due diligence before the appointment. The Board of directors did notmove to court to stop or charge any official who left the company without following the dueprocess for damages.How the failure of ethical culture at TFS contributed to its demiseThe company failed because of the failure of ethical culture. It had many unethical practices,including a lack of integrity and unfair dealing in business, and it had no duty to care for the

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Term
One
Professor
NoProfessor
Tags
Management, Public company

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