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Corporate Compliance Plan - Assignment Example

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The traditional ways of performing businesses are no more fetching the expected returns. Along with the changing terms and tricks of trade, the business houses are…
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Corporate Compliance Plan
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Corporate Compliance Plan

Download file to see previous pages... framework and the related laws assumed significant importance as one after the other of the big companies failed because of scams and nexus in between the management of the companies and the financial institutions e.g. Enron, World Com, Adelphia and Tyco International.
Riordan Manufacturing, Inc is the industry leader in the manufacturing of plastic injections. The company was previously named as Riordan Plastics, Inc and was established in the year of 1991 by Dr. Riordan, a professor of Chemistry who had many patents in his credit in the plastic related subjects. The company employs more than 500 employees and operates from various centers of United States as well as China though headquartered at San Jose.
The Riordan Manufacturing is a company by nature and not sole proprietorship or partnership. The sole proprietorship is such a business that is owned by the owner individually. The owner is not separate form such businesses and the liability of the business can be bestowed upon the owner. The partnership is another form of business where two or more persons come together for a certain business operation in order to make profit. In the case of partnership also, the liabilities of the firm can be transferred to the owners if the firm is unable to meet it. The company form of business is the most widely used form. It can be private limited company or the public limited company. In case of a private limited company, the directors are responsible for liable for financial obligations but for the public limited company or the limited liability company that is not the case. Even if the company is limited as Riordan Manufacturing is assumed to be, the officer’s liability would include the following:
The liabilities of the directors and the officers in any public limited company in the United States are guided by Sarbanes – Oxley Act. Sarbanes – Oxley Act was enacted in the year of 2002 in order to check financial scandals and scams in the western economies like ...Download file to see next pagesRead More
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