Corporate Governance - Dynegy Corporation - Case Study Example

The paper 'Corporate Governance - Dynegy Corporation " is a good example of a management case study. Corporate governance is a wide topic that involves several concepts and it is usually practiced in various organizations around the world. The concept of corporate governance practices has evolved over the years in order to meet the changing demands of the corporations’ stakeholders. Different state corporations use corporate governance practices. This is in ensuring that all aspects of the business including improving the systems that can be used to enhance accountability on business endeavors and tax returns are adhered to. Corporate governance has been defined as a multi-dimensional subject. The most important dimension under the corporate governance is its nature and level of accountability among the different stakeholders who in one way or the other are associated with the company. This is in coming up with specific systems that can be used to counter any possible risk as illustrated by Clarke (2007).

There has been a constant demand for reforming corporate governance activities in order to meet the changing demands of modern corporations especially since 2001 when well known world-class corporations collapsed as a result of large accounting frauds as illustrated by Clarke (2007). For example in the U.S, the Enron Corporation and MCI Inc. were among those companies that were affected. This posed a big challenge to the U.S federal government thus necessitating the need to pass an act to help reform the public corporations. In 2002, the Sarbanes-Oxley Act was passed by the federal government in order to help revive the state confidence on corporate governance act as stated by Murray (2007). In Australia, the situation was the same when the HIH and One. Tel collapsed resulting in the government coming up with the CLERP 9 Act for the purpose of reforming the corporate governance as stated by Murray (2007). The situation was similar in Italy. The passage of the Sarbanes-Oxley Act by the federal government is the one that necessitated this project in order to establish to what level the act has helped in reforming corporate governance. To substantiate our findings we selected the Dynegy Company in order to help us complete our project in coming up with conclusions and recommendations based on the findings from the company according to Murray (2007).