Escolar Documentos
Profissional Documentos
Cultura Documentos
PPLC Ltd was a Malaysian company with lumber business in East Malaysia, Kalimantan,
Australia and United State of America (USA). They contributed the fund for capital and operational
expenses with sent their production engineer, marketing manager, purchasing managers and
financial controller. Their joint venture set up in the 1990s with YBLC Ltd, in Antu, China as a
holding company with 51% interest.
YBLC Ltd was a foreign investment company located at Antu in North East China. Antu
township government contributed the land and took up 49% shareholding. They had power the
management and appointed a Chinese general manager (GM) who is familiar with the Chinese laws
custom and culture.
Mr. Zhang appointed as general manager (GM). He is a Communist party member and
company's commissar and not familiar with the International Accounting Standard. Mr. T is a
financial controller (FC), where he assists the general manager (GM) in the day-to-day running of
the operations of the company. He was custodian of the foreign partner's interest in Antu and
responsible on budgetary, accounting and reporting functions.
Mr. Lee it is economic officer (EO) in charge of foreign investment joint venture in Antu.
Therefore, all the documents annual return, including the financial statement, was sent through him
for filing at the Provincial FETC at the provincial capital. Mr. Lee represented the interest of the
Chinese government official supervising foreign joint venture companies, by changing the profit
and loss position from loss to profit, so that he could point a rosy picture in his report of joint
venture performance under his charge.
He could not alter the financial statement if he had followed the International Accounting
Standard and International Financial Reporting Standard, than his financial statement represented '
true and fair view' of the financial position of the company. If he follows the ethical code of the
MIA, he should make a stand on the finalized accounts, by submitting his work for the scrutiny of
the external auditor only.
The accounting issue and some alleged taxes offence, the case study actually raised a whole
range of corporate governance. Corporate Governance encompasses achieving corporate mission or
objective, law compliance, upholding code of best practices and adherence to business and personal
ethics. The corporate governance could be the foundation of a better business world where fraud,
malpractice, corruption could be minimised.
4.
The major issue in this case is regarding the lack of corporate governance within the business.
The solution available would be for Mr. Zhang to have good corporate governance, which can lead
to good internal control, increase productivity, increase profit, will decrease fraud and reduce audit
risk. When establish a company and implement in. All Broad of Director should adhere with CG
rules.CG is system by which companies are directed and controlled. Whereby he Corporate
Governance encompass achieving corporate mission or objective, law compliance, uploading code
of the best practice and adherence to business and personal ethics.
benefit of its member and not to accept benefit from third parties, but based on this
case, we can see that the Economic Officer cum Director, Mr Lee, has requested the
subordinate to alter the financial reporting from showing loss to profit because of his
promised to Provincial of China and because of the self-interest towards the merit system
which means if he shows a good record he will get a fast promotion.
for discussion and consideration of different points of view, different ways of thinking, and
different ways of living.
In adverse, cultural diversity means that people need to learn more about people
unlike themselves, and be more cognizant of how they present something might offend
someone, or may be misunderstood (this misunderstanding could range from a different
interpretation by that culture to a language barrier).
Business law
Corporate governance
they have enough knowledge and skills. Other than that, the cost incurred to provide training
and seminars are quite expensive.
RECOMMENDATIONS.
First of all, Mr Lee should retract his misleading instructions given to Mr Zhang to avoid a
breach of the professional conduct and practices. When you realize that you spoke in error, it is wise
to take back what you said to avoid repercussions. Mr Lee should realize his errors and how it will
affect him on an ethical and professional level. If he does not retract his statement, he will be in
breach of his duties as a director to the company.
Secondly, Mr Zhang should take a strong stand on ethics and integrity. As a top management
employee, he should lead by example. By taking a stronger stand on ethics and integrity and voicing
out his concerns on unethical behaviour regardless of who does it, he can ignite a more ethical
environment in the company. In doing so, there will be a reduction of unethical behaviour whether
intentionally or unintentionally.
Finally, Mr Tee should not fiddle with the financial statements as per instructed by Mr Lee
through Mr Zhang. Mr Tee knows of the fact that if he changes the financial statements, he is
committing an unacceptable and unethical behaviour that might have a severe repercussion towards
him and the company. He should rectify the situation by going against the unethical instructions.
CONCLUSION.
In conclusion, when we are faced with ethical dilemmas in a company, regardless of our
position, we must take a step back and analyse the situation and the consequences that will follow
each action taken. When faced with adversity, one must have a strong stand on their ethics and
integrity. Furthermore, rectifying an unethical situation will avoid adverse reactions that might
damage the companys good reputation.
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