Hm Case Summary
Prepare a memorandum to the board of directors of HMI outlining and supporting your recommended course of action for addressing the issues at the Mines 1 and 2.
The memo should include the following:
a) Identify the corporate governance issues at HMI's mines. * The issue: On one hand, the diverting power into provincial electrical grid has resulted in an overlook for its own operations. On the other hand, a significant portion of these earnings is going into executive bonus pool for distribution to senior management. * This has demonstrated the company’s management has been corrupt in some respects, especially the earning should be used to solve the company’s own operation problem. * The company is lack of social responsibility …show more content…
* Safeguard integrity in financial reporting.
Companies should have a structure to independently verify and safeguard the integrity of their financial reporting. * Make timely and balance disclosure
Companies should promote timely and balanced disclosure of all material matters concerning the company * Companies should establish a sound system of risk oversight and management and internal control.
c) Suggest ways to monitor compliance with corporate governance requirements. * Establish sound, transparent and compulsory reporting system.
Stringent transparency in all important matters (in particular regarding conflict of interests, third party transactions); Timely disclosure of the annual report (also in English);Reporting of non-financial risk related information * Set up audit committee. To ensure sufficient audit quality: True independence of auditors including an open and transparent tender process as well as prohibition of most non-auditing services. * Allow public bodies to monitor and interfere in company’s compliance issue. Public bodies like ASX, Government.
d) Recommend the philosophy and approach of Heavy Metal Inc. to the
The memo should include the following:
a) Identify the corporate governance issues at HMI's mines. * The issue: On one hand, the diverting power into provincial electrical grid has resulted in an overlook for its own operations. On the other hand, a significant portion of these earnings is going into executive bonus pool for distribution to senior management. * This has demonstrated the company’s management has been corrupt in some respects, especially the earning should be used to solve the company’s own operation problem. * The company is lack of social responsibility …show more content…
* Safeguard integrity in financial reporting.
Companies should have a structure to independently verify and safeguard the integrity of their financial reporting. * Make timely and balance disclosure
Companies should promote timely and balanced disclosure of all material matters concerning the company * Companies should establish a sound system of risk oversight and management and internal control.
c) Suggest ways to monitor compliance with corporate governance requirements. * Establish sound, transparent and compulsory reporting system.
Stringent transparency in all important matters (in particular regarding conflict of interests, third party transactions); Timely disclosure of the annual report (also in English);Reporting of non-financial risk related information * Set up audit committee. To ensure sufficient audit quality: True independence of auditors including an open and transparent tender process as well as prohibition of most non-auditing services. * Allow public bodies to monitor and interfere in company’s compliance issue. Public bodies like ASX, Government.
d) Recommend the philosophy and approach of Heavy Metal Inc. to the