個案資料
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Royal Group Technologies
內容大綱
The Royal Group Technologies case provides information on insider trading and other allegations faced by the former executive officer and the company’s management team. The executive officer founded the firm after immigrating to Canada from Italy, and built it up into a large conglomerate by the 1990s. However, by the early 2000s, stakeholders were starting to question some of management’s practices, including awarding themselves high levels of compensation and engaging in related party transactions. The allegations led to charges being laid by the Royal Canadian Mounted Police in 2008. An Ontario Superior Court justice acquitted the management team in late 2009, providing a soon-to-graduate MBA student the chance to review the company’s successes and challenges in the hope that some general lessons about corporate governance could be distilled.
學習目標
This case allows for a discussion of control systems within a corporation and the impact of not having an effective system of checks and balances. Specifically, the case illustrates the example of a founder, owner, and CEO who possesses all of a special class of shares (multiple voting shares) that gives him disproportionate control of a publicly traded corporation.