Corporate governance case studies volume one
AWTs financial health deteriorated with a negative growth of 20 per cent from toand losses increased 9 fold in the one-year period, attributable to the rise in doubtful debt expenses and finance expenses, and the 50 per cent drop in gross profit for its main power plant business Bond Subscription Agreement BSA As AWTs projects were generally capital-intensive and required considerable upfront capital commitments, the company took on substantial financing.
Corporate governance case study ppt
If so, how? With the successful completion of the deal, SI Infrastructure would hold not less than The proposed investment by SI Infrastructure was also aborted. In November and December , two more non-executive directors were appointed. Eventually, Huang Hanguang was removed from the board and as CEO13, and four new directors were appointed. The case was developed from published sources solely for class discussion and is not intended to serve as illustrations of effective or ineffective management. See Less - Details. When considering financing options for a company seeking to expand or trying to stay afloat, what are the key factors that the board and management should consider? A boardroom tussle then ensued. Amret was launched in , and obtained a license to operate as a deposit-taking MFI in With additional working capital for its projects, it was good news for the market.
Consequently, the interpretations and perspectives in this case are not necessarily those of the organisations named in the case, or any of their directors or employees. As a result, in the same month when the issue of the Series 1 bonds was completed, the company had already breached a financial covenant relating to the bond.
Corporate governance case studies volume 4
In June , at the beginning of the boardroom tussle, the companys share price was at 9 cents. The objective of this case is to allow a discussion of issues such as the evaluation of financing options, duties of directors in an insolvency situation, board composition, the removal of directors by shareholders and the resignation of directors. At the highest point of ownership, EGN held Offer from SI Infrastructure The board considered SI Infrastructures offer to be superior, given the latters financial stability and the potential for synergy. Another issue raised was SI Infrastructures motive behind the investment. As a result, in the same month when the issue of the Series 1 bonds was completed, the company had already breached a financial covenant relating to the bond. It obtained an extension until 5 June , pending the conclusion of an agreement for new injection of funds into the company by potential investors. However, AWTs shares were suspended for trading on 8 September , with its last traded price at 20 cents. Furthermore, the Board codified its CG policies, developed remuneration and evaluation procedures, and made an attempt to eliminate conflicts of interest with respect to related party transactions and procurement practices with technical vendors.
Although the shift of business model was initially successful, AWTs business went downhill when it gradually expended its available capital. In Juneat the beginning of the boardroom tussle, the companys share price was at 9 cents.
The proposed investment by SI Infrastructure was also aborted. The companys share price fell from over 20 cents to below 10 cents With additional working capital for its projects, it was good news for the market.
In Venkataramanas view, the board has also not undertaken adequate project financing planning, given the bad cash flow management in the company.
If so, how? In another letter dated 13 August, EGN called for the appointment of Venkataramana and Peter Lai as the non-executive and independent directors respectively.
Furthermore, a major earthquake in Sichuan in threatened the progress of their water 22 In Deep Water: Boardroom Tussle at Asia Water Technology infrastructure projects, and higher loans and borrowings caused the Group to breach its debt covenants during the quarters ended 30 June and 30 September While the peak in August and September could be due to Venkataramanas continuous purchase of shares, it might also be attributable to investors rising confidence in the firm and the possibility of a takeover by EGN.
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