Given Kodak filing for bankruptcy, what are your thoughts on the fiduciary responsibility of the audit committee and board of directors?
The audit committee and board of directors both have several fiduciary duties.
Board of directors:
One of the main duties of any board of directors is to govern and oversee the corporation's operations. Kodak has come under great fire in their bankruptcy because of how money has been managed for the past few decades and the people that now must suffer. Decades ago, Kodak was known for treating employees very extravagantly. Stock options, cash bonuses, and other forms of rewards were handed out at management's choosing at random times. It was common for a cash payment to be given to all employees simply because the company had a good week or a great day. People were pushing to get in the doors at the company. They were pioneers in the digital camera industry and business was going strong. Now we fast forward to the present, and we must look back on these activities. We now see that while the board of directors ...
The solution examines Kodak filing for bankruptcy, and the fiduciary responsibilities of the audit committee and board of directors.