Unit-3 Analysis Clive Peeters Assignment Help
Unit-3 Analysis Clive Peeters Assignment Help Corporate governance broadly refers to the rules, processes, or laws by which businesses are operated, regulated, and controlled. It can also include internal factors defined by the officers, stockholders or constitution of a corporation, as well as to external forces such as consumer groups, clients, and government regulations.
Well-defined and enforced corporate governance provides a structure that, at least in theory, works for the benefit of everyone concerned by ensuring that the enterprise adheres to accepted ethical standards and best practices as well as to formal laws. (Lincoln, T., 2011)
The corporate governance reports are favourable for all the three years. Most principles and recommendations are complied with. The exceptions have been taken care of and are well within the guidelines provided. The principles are laid so as to work in best interest of shareholders. There is a solid foundation for management and oversight, majority of the board of directors are non executive. Process for evaluating the board’s performance is put in place to monitor them effectively. The principles are set up so as to ensure that ethical standards are high while keeping in mind that sound decision making is also taken. To this effect there is a established Code of Conduct.
To protect the integrity of financial reporting the audit committee is set so that it comprises only non executive director. The company ensures ASX listing rule are made and all the relevant disclosures are made in time. Communication policies are designed to promote effective communication with shareholders and encouraging their participation.
In this section, we analyse the company’s image in the media and public and the experts’ opinion about its financial health and future potential.
Media reports about the company have been highly unfavourable. The reduction in profitability in most of the stores became apparent and causes for concerns were increasing. As it is quite evident with the 2009 annual report, the performance of the company was highly unsatisfactory. Almost all sections of media wrote adversely of the company’s prospects. (Cunningham, S., 2010)
Unit-3 Analysis Clive Peeters Assignment Help
The company suffered a case of employee fraud where a payroll officer falsified entries in the company’s payroll accounts, transferred cash from Clive Peeters’ bank accounts to her own account and used the money to buy 41 properties worth just under $20 million. (Stafford, P & Thomson, J., 2010)
The company was endangered of becoming insolvent when the board of directors decided to call the ASX on 19th of May 2010 and suspend all transactions for a session. During this time the board decided to relinquish the control and called for voluntary administration. They also asked the National Australia bank to waive off $10 million of its $38 million debt. (Clivepeeterslimited, 2009)
All stakeholders were affected by this move. The already declining share price plunged further. There were also reports of investors planning to action lawsuit against the Commonwealth Bank in the Federal Court. Meanwhile, the customers were also worried about a number of issues around deposits, warranties and gift certificates.
In July 2010 Harvey Norman invested $55 million in Clive Peeters. Subsequently there was a management change and Nik Papa was appointed General Manager. However, in august 2011 a senior executive admitted that the takeover of Harvey Norman was a bad decision since the brand was tainted beyond repair. As a result many of the stores had to be closed down and others were changed to Harvey Norman Stores.
The paper is an exhaustive report of Clive Peeters financial health and management practice. We analyse the company on both quantitative and qualitative basis. Financial ratios are used for quantitative analysis whereas the annual report with director’s review and corporate governance along with various media sources are used for qualitative analysis.
Our finding is that the company is deteriorating in its performance. It is increasingly becoming a bad destination for investors and debtors. Very little has been going right with the company. Their products are waning in market and their market share too has taken a hit. (Richards, D., 2009)
Their growth targets are misplaced and their strategies have backfired. This has been worsened by the global recession and a negative consumer outlook. Internally too the company had to bear a loss of $20 million due to case of fraud by an employee.
In general the brand, as it is rightly put by a senior executive, is tainted beyond repair. Order Now
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