ACCA - P1 Professional Accountant: Study Text by BPP Learning Media PDF

By BPP Learning Media

ISBN-10: 0751763748

ISBN-13: 9780751763744

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Sample text

The organisation is using shareholders instrumentally to pursue other objectives. 2 Normative view of stakeholders This is based on the idea that organisations have moral duties towards stakeholders; thus accommodating stakeholder concerns is an end in itself. This suggests the existence of ethical and philanthropic responsibilities as well as economic and legal responsibilities and organisations focusing on being altruistic. The normative view is based on the ideas of the German philosopher Immanuel Kant.

In future chapters we shall examine what happens when directors fail to exercise proper supervision. 12 Company secretary Company legislation in many countries makes reference to certain specific duties of the company secretary but does not provide a general definition of what the company secretary should do. The secretary's precise duties will vary according to the size of company. The most important duties, however, will be in the following areas: (a) Arranging meetings of the board of directors.

Although an agent is entitled to his agreed remuneration, he must account to the principal for any other benefits. If he accepts from the other party any commission or reward as an inducement to make the contract with him, it is considered to be a bribe and the contract is fraudulent. 3 Agency in the context of the director-shareholder relationship 6/08 Agency is a significant issue in corporate governance because of the dominance of the joint-stock company, the company limited by shares as a form of business organisation.

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ACCA - P1 Professional Accountant: Study Text by BPP Learning Media

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