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Read the case readings very carefully and finish 3pages(800words) case questions.
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Answer 800words approximately case questions. No external references allowed.
Please read the requirements very carefully. And the most important, everything has to be 100 percent original, any kind of plagiarism cannot be accepted. Thank you so much!!
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1. MSO’s corporate governance.
MSO has exhibited corporate governance in that despite having shareholders, it has hired
private individuals to head the company. The company is mainly being run by its founder and at
time CEO Martha Stewart. Apart from her, there is a board constituted to oversee the company’s
operations, being run by the chairman of the board.
Through time and despite the wrangles experienced in the company, the company has
failed to separate the ownership of the company and the company’s control by the management.
Even while being in prison twice, Martha Stewart was running the company. The new CEO Lyne
is said to have been visiting together with Koppelman Martha Stewart at the prison to discuss
business. It is candid that despite all the tries to separate the company, these attempts fail and
Stewart says she is MSO, she is the company. This tough stand of her has facilitated many of her
confidants to resign, as she rakes in much money at the expense of the company’s plummeting
revenues. In as much as Stewart finally didn’t assume CEO’s role, it is clear that her grip is tight
on the company and managerial control can’t be free of her grip.
2a. The effectiveness of the company’s board of directors
This company’s board of directors constituted of four main seats assigned specific roles
in the company. This demarcation of roles is so crucial as it stipulates the exact assigned duties
to the individuals, ensuring effective flow of command and execution of duties. Their board is
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also sort of independent as there are two external seats on the board. This is fundamental to
making the board represent well shareholders interests.
2b. Directors monitoring and control of the company
The directors have really tried in monitoring and taking control of the company. The
company has gone through a series of challenges where its revenues have plummeted but the
directors have worked together in partnership with the sitting chairman and CEO to bring the
company back to life. These directors represent the interests of the shareholders and thus must
run the company effectively. For the years the company’s founder was in prison, they have
facilitated smooth succession of CEOs. The board even managed to keep Stewart at bay from the
CEOs role for some time, a clear indication they were in control. The board also evaluated and
thereafter facilitat...