Explore BrainMass
Share

Explore BrainMass

    CEO Obligations - MF Global

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    After the recent bankruptcy declaration of MF Global, the Chairman and CEO, Jon Corzine, indicated that he had no knowledge of the missing customer funds. Discuss the obligation of corporate CEOs to shareholders and employees to know about the financial activity of the corporation.

    © BrainMass Inc. brainmass.com October 10, 2019, 5:09 am ad1c9bdddf
    https://brainmass.com/business/entrepreneurial-issues/ceo-obligations-mf-global-494898

    Solution Preview

    Unfortunately, we thought we saw the end of CEOs being able to claim ignorance after the creation of the Sarbanes Oxley Act, which resulted from the accounting scandals that took place in the early 2000s. In those scandals, the CEOs also claimed ignorance; they had no idea what was going on, in several of the cases. As a result, one of the provisions in the SOX Act actually requires the CEO and CFO to sign affidavits stating that they are personally aware of the information contained in the financial statements and the financial activities of the company. Apparently in the case ...

    Solution Summary

    After the recent bankruptcy declaration of MF Global, the Chairman and CEO, Jon Corzine, indicated that he had no knowledge of the missing customer funds. Discuss the obligation of corporate CEOs to shareholders and employees to know about the financial activity of the corporation.

    $2.19