IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-51886-5_10.html
   My bibliography  Save this book chapter

Enron Revisited: What Is a Board Member to Do?

In: Enron and World Finance

Author

Listed:
  • Beth Krasna

Abstract

Given the evolution of the role of the Director of the Board and the increased liability attached to the position, in particular since Sarbanes-Oxley became law, it is important to know what degree of freedom a Board member could have in a situation such as Enron. The Permanent Subcommittee on Investigations of the Committee on Governmental Affairs of the United States Senate published their report, entitled The Role of the Board of Directors in Enron’s Collapse, on 8 July 2002. The Subcommittee examined in detail the role of the Enron Board in the company’s bankruptcy, and held the Board accountable for the company’s downfall. The Subcommittee believes that the Enron Board not only failed their shareholders and employees, but also did not acknowledge their own responsibility in the collapse. The main findings with respect to the role of the Enron Board of Directors are regrouped in the report under the following six headings: high risk accounting; inappropriate conflicts of interest; extensive undisclosed off-the-books activity; excessive compensation; lack of independence; and fiduciary failure.

Suggested Citation

  • Beth Krasna, 2006. "Enron Revisited: What Is a Board Member to Do?," Palgrave Macmillan Books, in: Paul H. Dembinski & Carole Lager & Andrew Cornford & Jean-Michel Bonvin (ed.), Enron and World Finance, chapter 10, pages 168-179, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-51886-5_10
    DOI: 10.1057/9780230518865_10
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-51886-5_10. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.