Kamala, a successful American businesswoman with reputable managerial skills, was newly appointed as the President of...
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Kamala, a successful American businesswoman with reputable managerial skills, was newly appointed as the President of Biogen Pharmaceuticals PJSC (a company incorporated in the UAE). Kamala also serves as Chairwoman of the Board of Directors for two other companies established in Kuwait and Oman. In the run-up to the first General Assembly since her appointment, Kamala discovered that the Board of Directors have been secretly using a portion of the statutory legal reserve to increase their annual remuneration, which she calculated to be 13% of net profits. She also discovered that four months before she joined Biogen, the company entered into an agreement with a bio-waste removal company, which was partly owned by Donald (a member of the Board of Directors). However, there was no record that Donald had disclosed this fact to the other members at the board meetings. Lastly, an employee informed Kamala that the company's external auditor, Joe, is the son of the Deputy Chairman of the board. Upon discovering this information, she called an urgent meeting of board members (excluding the Deputy Chairman) and they unanimously voted to dismiss the auditor. After his removal, Joe disclosed information about Biogen's highly classified Covid-19 drug trials on Twitter. Discuss the legal issues that arise from the above scenario. In your analysis, identify all possible legal issues and provide the relevant legal rules. Kamala, a successful American businesswoman with reputable managerial skills, was newly appointed as the President of Biogen Pharmaceuticals PJSC (a company incorporated in the UAE). Kamala also serves as Chairwoman of the Board of Directors for two other companies established in Kuwait and Oman. In the run-up to the first General Assembly since her appointment, Kamala discovered that the Board of Directors have been secretly using a portion of the statutory legal reserve to increase their annual remuneration, which she calculated to be 13% of net profits. She also discovered that four months before she joined Biogen, the company entered into an agreement with a bio-waste removal company, which was partly owned by Donald (a member of the Board of Directors). However, there was no record that Donald had disclosed this fact to the other members at the board meetings. Lastly, an employee informed Kamala that the company's external auditor, Joe, is the son of the Deputy Chairman of the board. Upon discovering this information, she called an urgent meeting of board members (excluding the Deputy Chairman) and they unanimously voted to dismiss the auditor. After his removal, Joe disclosed information about Biogen's highly classified Covid-19 drug trials on Twitter. Discuss the legal issues that arise from the above scenario. In your analysis, identify all possible legal issues and provide the relevant legal rules.
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The legal issue in the above case is that Biogen Pharmace... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Posted Date:
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