Corporate Goverance Concept Worksheet Essay Example | Topics and Well Written Essays - 750 words

Corporate Goverance Concept Worksheet - Essay fashion modelThe companies have different expectation that can lead to conflicts because of their interests and dispatchs (Minnow & Monk, 2002).The equity issue involves division of bon tons ownership. This helps in the companies gain from the increase in profits and wide market. This means that both companies will gain from the investment (Minnow & Monk, 2002).McBride finance services company has an intention to remain in control of the company unconstipated after selling majority shares to Beltway investment company. A clear illustration of this is that the chief executive has make in the selection of the board of directors. As Beltway gives the company freedom to select the directors, Mc Bride ensures that it influences the selection. The board comprises of the lot it can influence to make decisions favoring McBride company. The scenario give rises conflict of interest, which was non brought out during negotiations.The conflict of interest will create a hostile working relationship between the two companies. The reason behind this is the win-lose situation created by the company. Beltway wants a fair selection of the board (Tricker, 2009).Control involves trail of the company activities and who is in charge. The control of the company should be in the best way possible. The selection of the board should be on merit not on other hidden agendas. Fair selection and freedom to managers will help in running the company affairs to achieving its objectives and goals to the maximum (Tricker, 2009).Beltway company did not identify Mc Brides intention in its issue. Mc Bride company does not intend to let Beltway know the real, financial position. The company does this through tampering with financial documents. The company also does not comply with Sarbanes-Oxley act of corporate responsibility of financial reportage (Greene, Silverman & Becker, 2003). The company aims at using internal controls to hide