Worldcom

To: WorldCom
From: pt62311
Subject: Corporate Governance
Date: April 29, 2011

This memo discusses the corporate formation policies that calling card of directors should have had in place to successfully duck the crisis.
Background
The telecom industry in the US is regulated by FCC to encourage competition and they also forced big carriers to pass on their networks to local exchange carriers1. With comparatively less entry to obstruction resulted in many small startups and many of them then corporate in WorldCom to make it the second largest carrier in 1998. assiduity analysts usually focus on around specific ratios the likes of E/R ratio in case of WorldCom and so the company was also forced to manage costs and increase revenue. During the economic crisis the E/R ratio was increasing and light-emitting diode to the fraud of over $7 Billion2 done by some executives at WorldCom. They manipulated the financial statements to make this ratio look good. hitherto they would not have succeeded if the hop on of directors had some of the policies and procedures discussed below.
Analysis and Recommendations
WorldCom as a company in 2000 seems to be in the infancy of puritanical corporate governance.



The company is a classic exercise of what could go wrong when you dont have proper policies and procedure in place to facilitate the company in making the best decision that maximizes the shareholder value.
mesa of Directors
The bestride members at WorldCom were usually the directors or owners of the companies acquired by WorldCom. The chairman of board only had an honorary role and CEO presided over the board meetings3. In the crisis, when board was expecting cuts in capital expenditures and were told that there was a steady decrease (which were fraudulent) they didnt go ahead and asked the interrogative Why in much detail.
Policies
1.Include independent Board of Directors as members4. This helps make sure that their actions are not influenced by the company. It will also attract more active exponentiation because...If you want to get a full essay, order it on our website: Ordercustompaper.com



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