Executive Summary The purpose of this analysis to review corporate governance structure of Nathans Finance and to discuss key issues and risks that affected to its failure. The key points covered are as follows: o Nature of Nathans Finance o Corporate governance structure and whether it meets the best practise for the organisation. o Business risks and its links with the directors o Misstatements of financial statements or account balances significant to related party transactions o Identification of issues related with board formation Background Nathans Finance (Nathans) is a failed finance company which was part of the VTL Group – a group involved in Vending Technologies. Following the groups listing on the stock exchange positive earnings were reported however this did not last and both Nathans and VTL (Parent) were placed into receivership in 2007/2008 respectively. It was discovered that 97% of loans were to VTL. Essentially the investors’ funds have disappeared with VTL showing no assets and have negative shareholders’ funds of $135.3m. VTL Group was listed on the NZX in November 2000 selling 7.5m shares at $1. Following the float, 74.6% of shareholdings were held by founding shareholders but had only contributed 6.25% of the dollar value of capital. Two of the initial shareholders held 66.4% of the shareholding and held chief financial officer and executive director of operation roles. In 2001, Nathans was formed as a fully owned subsidiary and piggy backed off the name of an unrelated party ‘Nathan Finance’ without ‘s’ at the end. Nathan was a well-established Finance company that was later renamed ‘Nationwide Finance’ and included in the Allied Nationwide Finance Group. The directors of Nathans w... ... middle of paper ... ...e risk of directors becoming unnecessarily risk averse. That would not be in the interests of shareholders or the wider community. References and Bibliography Financial Markets Authority. (2014, April 01). FMA. Retrieved from FMA Web Site: http://www.fma.govt.nz/laws-we-enforce/enforcement/prosecutions-and-proceedings/finance-company-cases-before-the-court/#Nathans%20Finance Gaynor, B. (2009, January 31). NZHerald Business. Retrieved from NZHerald website: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10554397 MinterEllisonRuddWatta. (2012, October 29). Minterellison. Retrieved from Minterellison: http://www.minterellison.co.nz/files/uploads/Documents%5CWhitepapers/CorporateGovernanceWhitePaper2012update.pdf NZ, S. C. (2004, March 04). FMA. Retrieved from FMA Govt NZ: https://www.fma.govt.nz/media/178375/corporate-governance-handbook.pdf
From 1986 to 1989, the Federal Savings and Loan Insurance Corp. (FSLIC) closed 296 institutions with assets totaling $125 billion. With the creation of the Resolution Trust Corp. (RTC) in 1989 an additional 747 thrifts with assets totaling $394 billion were closed. That is a combined total of $519 billions in assets that contributed to a massive restructuring of the number of firms in the industry as stated by Curry & Shibut (2000).
This paper examines certain key financial ratios for three companies’ which operate in the market of gold. Presented are analyses and comparisons of the companies for the three most recent years, 2004, 2005, 2006. The focal point of the original analysis was Royal Gold. Two other strong companies in the gold market are Newmont Mining and Barrick Gold Corporation.
Based on the Consolidated Statements of Shareholder?s Equity, year ended September 2015, in page 71, as shown in the statement, there are no preferred stocks.
Capital access threats: Since it is a closely held company financial information is limited and if the company is not doing well it may find it difficult to access funding from financial institutions.
...ultimate fate of Northern Rock is still undecided although a consortium led by the Virgin Group is the bank’s preferred bidder. Virgin contends to re-brand the bank as part of the Virgin Money business and proposes the repayment of £11 billion of the £25 billion loan that the Bank of England has lent to Northern Rock. Although some call for the nationalisation of the bank in order to secure saver’s deposits and provide affordable mortgages, the real debate revolves around the changes that have to be made in legislation and the regulatory issues that have to be addressed. Considering that a country’s financial system is now completely integrated into one global scheme and is subject to the interdependance within the system, the price is too great for the economy of any country for there to be any allowance of irresponsible risk on the part of an individual institution.
General Electric Company (GE) is a diversified technology, media and financial services company. With products and services ranging from aircrafts engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and industrial products, it serves in more than 100 countries. This analysis will use financial ratios to see just how GE is performing as a Fortune 500 company.
billion dollars dept and had to decide to sell some of its business to carry
...rs, setting a good trend for the corporation. They also have a very low debt-to-equity ratio, indicating that they have enough equity to easily pay off any funds acquired from creditors. As a creditor I would feel safe in lending them funds for any future projects or endeavors.
Landow, George P. “Bankruptcy in Victorian England—Threat or Myth?” The Victorian Web. 22 March 2001. 7 Nov. 2004. .
The third risk is the Federal Communication Commission regulation. Any violation with their rules would lead to big consequential losses after being closed down. Therefore, this makes up the largest risk of the three. The company should do all they can to avoid this (Allen, 2000).
Artemis. "Alternative Capital the Biggest Challenge for Traditional Reinsurers: Moody’s."Www.artemis.bm. Artemis, 5 Sept. 2013. Web. 09 Nov. 2013. .
Financial distress is often expressed as the force that drives most of the corporate decisions. However, many researches argue that there is weak comprehension of the duties of and connections between corporate illiquidity and insolvency; the most important two causes of financial distress.
There has been a drive towards corporate governance which has been driven by a greater need for shareholder protection. If investors feel well cushioned then there is a higher chance that t...
Nottingham Trent University. (2013). Lecture 1 - An Introduction to Corporate Governance. Available: https://now.ntu.ac.uk/d2l/le/content/248250/viewContent/1053845/View. Last accessed 16th Dec 2013.
The company was founded in London in 1848 to provide loans and life assurances to working people.