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financial management - Essay Example
Author : ygleason
Finance & Accounting
Pages 5 (1255 words)
Does the corporate governance maximize shareholder’s wealth? Class University Date Does the corporate governance maximize shareholder’s wealth? I. Introduction and objective of the report The annual report is a report the company’s performance in the preceding year…
Shareholders are interested to know if the risk they took in investing in the company provided returns that increase the wealth not only of the company but also of the shareholders as well. II. Critical evaluation of corporate governance of a selected company The company that is the subject for evaluation of governance in this paper is Leeds PLC. Leeds PLC is the Group has been mainly engaged in textile processing, specialising in fabric printing and yarn dyeing, and by 1996 had manufacturing operations in UK, Holland and Italy. Leeds Group’s trading operations are conducted by Hemmers-Itex Textil Import Export GmbH. Hemmers is based in Nordhorn, Germany and has a Chinese subsidiary based in Shanghai. Together these companies employ some 120 people and achieved fabric sales of 13.1 million linear metres in the year ended 30 September 2009 (Leeds Group 2012). Inferring from the annual report of Leeds PLC, it can be said that the company is conservative in applying its cost. Conservative in applying cost meant providing generous allowance for expense to have a more accurate and realistic cost of the company. In fact, Leeds PLC may be one of few companies who are “honest enough” to reflect a s of ?454,000 in the fiscal year 2012 (Leeds Group PLC 2012) that would be seen by its shareholders. ...
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