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Liquidation of Austrian Companies

   

Added on  2020-03-02

12 Pages2660 Words485 Views
LIQUIDATION OF AUSTRALIANCOMPANIES – AN ANALYSIS HIH INSURANCE, ONE TEL PHONE AND ABC LEARNINGStudent Name: Student ID:

EXECUTIVE SUMMARYThere are many causes for the liquidation of companies that has happened across the globe.Some liquidates due to inability to make payments, some fails due to poor management functionof the company or some fails due to market conditions. In this report the liquidation of the threemajor companies has been detailed – HIH Insurance, One Tel Phone Company and ABCLearning. All the three companies are from different industry but the basic cause for the failureof three companies has been the bad corporate governance. Corporate Governance plays veryimportant role in the effective and efficient working of the company. The main objective ofpreparing this report is to analyze what are the situations that have arisen over the years whichhad lead to liquidation of the company. The second main aim is to comment upon the corporategovernance of all the three companies. With these objectives, the analysis has been made through report with adequate headings. 2

ContentsEXECUTIVE SUMMARY.................................................................................................................................2INTRODUCTION...........................................................................................................................................4BACKGROUND OF COMPANIES...................................................................................................................5LIST OF EVENTS CONTRIBUTING TO THE LIQUIDATION AND THE FAILURE OF CORPORATE GOVERNANCE6ETHICS AND FINANCIAL STRESS...................................................................................................................8LIABILITIES...................................................................................................................................................9RECOMMENDATION..................................................................................................................................10CONCLUSION.............................................................................................................................................10REFERENCES..............................................................................................................................................12INTRODUCTIONThe company operates through its board of directors. Board of directors is regarded as themanagement of the company. The board of directors has the power to take each and every3

decision for or on behalf of the company. The decision shall be taken with reference to theinterest of the stakeholders and the shareholders of the company. If the company fails to take aneffective and efficient decision then the company will not be able to survive in the future years.The functioning of the company is commonly referred to as the Corporate Governance. Thefunctioning shall be done with reference to the principles, guidelines and the provisions of thedifferent statutes prevailing within the country. If the company fails to function as per the guidelines, then it will be said that the company haslow corporate governance. The report has focused mainly on the corporate governance of thethree companies – HIH Insurance, ABC Learning and One Tel Phone Company and how thesame have lead to the liquidation of the company. Along with the corporate governance, ethicshave also been detailed as to how it has been followed throughout the companies and how thesame has led to the liquidation of the company. BACKGROUND OF COMPANIES4

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