Corporate Governance

Running Head: CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
Name of the Student
Name of the University
Author Note

1CORPORATE GOVERNANCE
Table of Contents
Corporate Collapses...................................................................................................................2
Corporate Governance Implications Stemming from Global Financial Crisis..........................3
Reference....................................................................................................................................6

2CORPORATE GOVERNANCE
1)
Corporate Collapses
Corporate failure is the term that entails discontinuation of the company’s operations,
which leads to the inability of the organization to reap the sufficient revenue or profit in order
to pay the expenses of the business. Generally, the corporate collapses are caused by the
fraud done by the management. There may be the instances, when the managers is influenced
by the personal greed that results into adopting the unfair means such as falsifying the
accounting reports and financial statement of the company (Soltani 2014). Following are the
three cases of early corporate collapses in the Australia and their underlying reason of failure:
 Alan Bond was the Australian businessperson, who was involved into dealings of the
high-profile business. He has also played the major role in the scandal of WA Inc of
1980s, which was the biggest corporate collapse in the history of Australia. In the year
1992, the Bond was declared bankrupt with the personal debts of $1.8 billion,
subsequently he was convicted of the fraud as well as imprisonment after pleading
guilty for using the controlling interest in the Bell Resources for deceptively siphon
off $1.2 billion into coffer of the Bond corporation (McCahery, Sautner and Starks
2016).
 Rothwells Ltd. was the listed financial institutions of Australia and it was dominated
by the entrepreneurial figure Laurie Connell. This expansion of this organization has
took place with the help of acquisitions and they used to provide the loans to various
companies on the second board of Western Australia Exchange, which was smaller,
newer as well as more entrepreneurial than that of the main board. Connell financed
them by acquiring the title of ‘Last chance Laurie’ in the process. After the collapse of
stock market in the year 1987, it has provided with the catalyst that has brought down
the organization. Moreover, the auditors have disclosed that Connell has done