Group 3 - Japan Land The Setting Sun
23 thg 9, 2024 | 10:07

Group 3 - Japan Land The Setting Sun



Case Overview

Corporate governance issues surrounding the independence and conflict of interest within the board in Japan Land surfaced in 2009, following the successive resignations of its Deputy Managing Director, Chief Financial Officer, external auditor and an independent director. Following the revelations of these corporate governance issues, the company’s share price fell from $0.37 in July to close at an all-time low of $0.27 at the end of November. On 30 March 2010, Japan Land suspended the trading of shares in the face of financial woes affecting one of its subsidiaries, Jurong Data Centre Development (JDD). By the end of June 2011, Japan Land was delisted from the Singapore Exchange. The objective of this case is to allow a discussion of issues such as board composition and director independence, resignations of independent directors, auditors and key officers and whether they are “red flags”, internal control and risk management, conflicts of interest and ethics. 


What are the key corporate governance issues raised in the Japan Land case? What are the major underlying causes of these issues? 

1. Segregation of duties

From the case study, we noted Mitsutoshi Ono is the chair of the Board of JALL and managing director of Japan land, these could lead to conflict of interest whereby he could award contracts to the subsidiary where he is the chairman of the Board.

Also Junya Kitada who was the Executive Director-cum-Chief Financial Officer of JALL, as well as the principal of the ‘Accounting Factory’, the accounting firm which has been providing accounting services to JALL for an undisclosed number of years was appointed as the internal auditor of Japan land









LINK DOWNLOAD (TÀI LIỆU VIP MEMBER)



Case Overview

Corporate governance issues surrounding the independence and conflict of interest within the board in Japan Land surfaced in 2009, following the successive resignations of its Deputy Managing Director, Chief Financial Officer, external auditor and an independent director. Following the revelations of these corporate governance issues, the company’s share price fell from $0.37 in July to close at an all-time low of $0.27 at the end of November. On 30 March 2010, Japan Land suspended the trading of shares in the face of financial woes affecting one of its subsidiaries, Jurong Data Centre Development (JDD). By the end of June 2011, Japan Land was delisted from the Singapore Exchange. The objective of this case is to allow a discussion of issues such as board composition and director independence, resignations of independent directors, auditors and key officers and whether they are “red flags”, internal control and risk management, conflicts of interest and ethics. 


What are the key corporate governance issues raised in the Japan Land case? What are the major underlying causes of these issues? 

1. Segregation of duties

From the case study, we noted Mitsutoshi Ono is the chair of the Board of JALL and managing director of Japan land, these could lead to conflict of interest whereby he could award contracts to the subsidiary where he is the chairman of the Board.

Also Junya Kitada who was the Executive Director-cum-Chief Financial Officer of JALL, as well as the principal of the ‘Accounting Factory’, the accounting firm which has been providing accounting services to JALL for an undisclosed number of years was appointed as the internal auditor of Japan land









LINK DOWNLOAD (TÀI LIỆU VIP MEMBER)

M_tả
M_tả

Chuyên mục:

Không có nhận xét nào: