Forge Group Ltd case study (B): director duties, management compensation and ownership, risk, and ethics

Article


Maloney, Suzanne. 2015. "Forge Group Ltd case study (B): director duties, management compensation and ownership, risk, and ethics." IMA Educational Case Journal. 8 (1).
Article Title

Forge Group Ltd case study (B): director duties, management compensation and ownership, risk, and ethics

ERA Journal ID41678
Article CategoryArticle
Authors
AuthorMaloney, Suzanne
Journal TitleIMA Educational Case Journal
Journal Citation8 (1)
Number of Pages9
Year2015
Place of PublicationUnited States
ISSN1940-204X
Web Address (URL)http://www.imanet.org/resources-publications/ima-educational-case-journal-(iecj)/issues/Volume%208,%20issue%201
Abstract

The demise of Forge Group Ltd (FGL) is used to examine corporate governance, management compensation and ownership, risk, and ethics. Forge Group Ltd was a successful engineering company that collapsed within 12 months of a share price peak. The importance of good fundamental internal reporting is demonstrated by giving students the benefit of hindsight. The visceral feel of a corporate collapse with real investors losing money highlights the relevance and value of accounting and basic financial management.

This case and companion case A analyze FGL’s collapse. Case A focuses on the “numbers” by examining the financial statements, working capital management, and growth. Case B focuses on directors’ duties, management compensation and ownership, risk, and ethics. Independently or together, the cases can form the basis for a discussion about the governance of corporations, including reporting, transparency, risk, compensation, and ethics.

Basic-level students would be expected to explain and discuss key corporate governance concepts such as director duties, management compensation and ownership, risk, and ethics. Intermediate-level students would be expected to apply concepts such as director duties, management compensation and ownership, risk, and ethics to a real-world scenario. And advanced-level students would be expected to critique and draw conclusions on the application of director duties, management compensation and ownership, risk, and ethics to a real-world scenario.

Keywordsfinancial statement analysis; take-overs; risk; corporate governance; ethics; management compensation
ANZSRC Field of Research 2020350105. Management accounting
Public Notes

Files associated with this item cannot be displayed due to copyright restrictions.

Byline AffiliationsSchool of Commerce
Institution of OriginUniversity of Southern Queensland
Permalink -

https://research.usq.edu.au/item/q3416/forge-group-ltd-case-study-b-director-duties-management-compensation-and-ownership-risk-and-ethics

  • 2075
    total views
  • 12
    total downloads
  • 1
    views this month
  • 0
    downloads this month

Export as

Related outputs

The effectiveness of nudging key learning resources to support online engagement in higher education courses
Brown, Alice, Lawrence, Jill, Alexsen, Megan, Redmond, Petrea, Turner, Joanna, Maloney, Suzanne and Galligan, Linda. 2024. "The effectiveness of nudging key learning resources to support online engagement in higher education courses." Distance Education. 45 (1), pp. 83-102. https://doi.org/10.1080/01587919.2024.2303491
Defining and exploring online engagement fatigue in a university context
Maloney, Suzanne, Axelsen, Megan, Stone, Cathy, Galligan, Linda, Redmond, Petrea, Brown, Alice, Turner, Joanna and Lawrence, Jill. 2023. "Defining and exploring online engagement fatigue in a university context." Computers and Education Open. 4.
Student Perceptions of Online Engagement
Redmond, Petrea, Alexsen, Megan, Maloney, Suzanne, Turner, Joanna, Brown, Alice, Basson, Marita, Galligan, Linda, Lawrence, Jill and Henderson, Robyn. 2023. "Student Perceptions of Online Engagement." Online Learning Journal. 27 (1), pp. 383-403. https://doi.org/10.24059/olj.v27i1.3320
The creation of a nudging protocol to support online student engagement in higher education
Brown, Alice, Lawrence, Jill, Basson, Marita, Axelsen, Megan, Redmond, Petrea, Turner, Joanna, Maloney, Suzanne and Galligan, Linda. 2023. "The creation of a nudging protocol to support online student engagement in higher education." Active Learning in Higher Education. 24 (3), pp. 257-271. https://doi.org/10.1177/14697874211039077
Gender differences in retirement transition goals and barriers: a case study in the university sector
Maloney, Suzanne. 2022. "Gender differences in retirement transition goals and barriers: a case study in the university sector." Labour and Industry: a journal of the social and economic relations of work. 32 (1), pp. 93-115. https://doi.org/10.1080/10301763.2022.2034089
Using LMS Log Data to Explore Student Engagement with Coursework Videos
Maloney, Suzanne, Axelsen, Megan, Galligan, Linda, Turner, Joanna, Redmond, Petrea, Brown, Alice, Basson, Marita and Lawrence, Jill. 2022. "Using LMS Log Data to Explore Student Engagement with Coursework Videos." Online Learning Journal. 26 (4), pp. 399-423. https://doi.org/10.24059/olj.v26i4.2998
Does Course Specific Nudging Enhance Student Engagement, Experience and Success?: A Data-Driven Longitudinal Tale
Lawrence, Jill, Brown, Alice, Redmond, Petrea, Maloney, Suzanne, Basson, Marita, Galligan, Linda and Turner, Joanna. 2021. "Does Course Specific Nudging Enhance Student Engagement, Experience and Success?: A Data-Driven Longitudinal Tale." Student Success. 12 (2), pp. 28-37. https://doi.org/10.5204/ssj.1914
The governance and management of child care centres
Maloney, Suzanne E.. 2016. "The governance and management of child care centres." Journal of Management Sciences. 3 (2), pp. 123-140. https://doi.org/10.20547/jms.2014.1603203
Statement of cash flows
Byrne, Suzanne. 2005. "Statement of cash flows." Accounting: business reporting for decision making. Milton, Queensland. John Wiley & Sons.
The business environment, ethics and corporate governance
Byrne, Suzanne. 2005. "The business environment, ethics and corporate governance." Accounting: business reporting for decision making. Milton, Queensland. John Wiley & Sons.
Forge Group Ltd case study (A): the revealing nature of numbers
Maloney, Suzanne. 2015. "Forge Group Ltd case study (A): the revealing nature of numbers." IMA Educational Case Journal. 8 (1).
Performance measurement
Maloney, Suzanne. 2014. "Performance measurement." Birt, Jacqueline, Chalmers, Kerryn, Byrne, Suzanne, Maloney, Suzanne, Brooks, Albie and Oliver, Judy (ed.) Accounting: business reporting for decision making, 5th ed.. Brisbane, Australia. John Wiley & Sons. pp. 608-652
Statement of cash flows
Maloney, Suzanne. 2014. "Statement of cash flows." Birt, Jacqueline, Chalmers, Kerryn, Byrne, Suzanne, Maloney, Suzanne, Brooks, Albie and Oliver, Judy (ed.) Accounting: business reporting for decision making, 5th ed.. Brisbane, Australia. John Wiley & Sons. pp. 268-331
Business sustainability
Maloney, Suzanne. 2014. "Business sustainability." Birt, Jacqueline, Chalmers, Kerryn, Byrne, Suzanne, Maloney, Suzanne, Brooks, Albie and Oliver, Judy (ed.) Accounting: business reporting for decision making, 5th ed.. Brisbane, Australia. John Wiley & Sons. pp. 40-75
Uses and perspectives of social media by accounting academics
Maloney, Suzanne. 2014. "Uses and perspectives of social media by accounting academics." Chova, L. Gomez, Martinez, A. Lopez and Torres, I. Candel (ed.) 7th International Conference of Education, Research and Innovation (ICERI 2014). Seville, Spain 17 - 19 Nov 2014 Seville, Spain.
The use and benefits of a take home exam in accounting education
Maloney, Suzanne. 2014. "The use and benefits of a take home exam in accounting education." Chova, L. Gomez, Martinez, A. Lopez and Torres, I. Candel (ed.) 7th International Conference of Education, Research and Innovation (ICERI 2014). Seville, Spain 17 - 19 Nov 2014 Seville, Spain.
Statement of cash flows
Byrne, Suzanne. 2010. "Statement of cash flows." Accounting: business reporting for decision making, 3rd ed.. Brisbane, Australia. John Wiley & Sons. pp. 244-301
Ethics and corporate governance
Byrne, Suzanne. 2010. "Ethics and corporate governance ." Accounting: business reporting for decision making, 3rd ed.. Brisbane, Australia. John Wiley & Sons. pp. 72-106
Accounting: business reporting for decision making, 3rd ed.
Birt, Jacqueline, Chalmers, Keryn, Byrne, Suzanne, Brooks, Albie and Oliver, Judy. 2010. Accounting: business reporting for decision making, 3rd ed. Brisbane, Australia. John Wiley & Sons.
Performance measurement
Byrne, Suzanne. 2010. "Performance measurement." Birt, Jacqueline, Chalmers, Keryn, Byrne, Suzanne, Brooks, Albie and Oliver, Judy (ed.) Accounting: business reporting for decision making, 3rd ed.. Brisbane, Australia. John Wiley & Sons. pp. 534-574
Performance measurement
Birt, Jacqueline, Chalmers, Keryn, Byrne, Suzanne, Brooks, Albie and Oliver, Judy. 2012. "Performance measurement." Accounting: business reporting for decision making, 4th ed.. Brisbane, Australia. John Wiley & Sons. pp. 560-606
Statement of cash flows
Birt, Jacqueline, Chalmers, Keryn, Byrne, Suzanne, Brooks, Albie and Oliver, Judy. 2012. "Statement of cash flows ." Accounting: Business reporting for decision making, 4th ed.. Brisbane, Australia. John Wiley & Sons. pp. 253-311
Business sustainability
Birt, Jacqueline, Chalmers, Keryn, Byrne, Suzanne, Brooks, Albie and Oliver, Judy. 2012. "Business sustainability ." Accounting: business reporting for decision making, 4th ed.. Brisbane, Australia. John Wiley & Sons. pp. 39-72
What determines ABC success in mature sites?
Byrne, Suzanne. 2011. "What determines ABC success in mature sites?" Journal of Accounting and Organisational Change. 7 (3), pp. 259-277. https://doi.org/10.1108/18325911111164204
Manager's degree of JIT involvement, locus of control and managerial performance
Byrne, Suzanne and Costin, Melanie. 2009. "Manager's degree of JIT involvement, locus of control and managerial performance." 23rd Australian and New Zealand Academy of Management Conference (ANZAM 2009). Melbourne, Australia 01 - 04 Dec 2009 Melbourne, Australia.
Governance and management interaction in a child care setting
Byrne, Suzanne. 2009. "Governance and management interaction in a child care setting." Beaumont, Nicholas (ed.) 23rd Australian and New Zealand Academy of Management Conference (ANZAM 2009). Melbourne, Australia 01 - 04 Dec 2009 Melbourne, Australia.
The workload model: theory into practice
Byrne, Suzanne. 2009. "The workload model: theory into practice." Critical Perspectives on Accounting. 20 (8), pp. 957-958. https://doi.org/10.1016/j.cpa.2009.03.004
Is ABC adoption a success in Australia?
Byrne, Suzanne, Stower, Erle and Torry, Paula. 2009. "Is ABC adoption a success in Australia?" Journal of Applied Management Accounting Research. 7 (1), pp. 37-51.
Activity based costing implementation success in Australia
Byrne, Suzanne, Stower, Erle and Torry, Paula. 2007. "Activity based costing implementation success in Australia." Chapman, Ross (ed.) 21st Australian and New Zealand Academy of Management Conference (ANZAM 2007). Sydney, Australia 04 - 07 Dec 2007 Australia.
Accounting: business reporting for decision making
Birt, Jacqueline, Chalmers, Keryn, Beal, Diana, Brooks, Albie, Byrne, Suzanne and Oliver, Judy. 2008. Accounting: business reporting for decision making. Brisbane, Australia. John Wiley & Sons.
Does individual locus of control matter in a JIT environment?
Byrne, Suzanne. 2011. "Does individual locus of control matter in a JIT environment?" Journal of Applied Management Accounting Research. 9 (1), pp. 37-57.
A small business portrait of tax, employment and business risk
Byrne, Suzanne. 2003. "A small business portrait of tax, employment and business risk." 48th ICSB World Conference. Belfast, Ireland 15 - 18 Jun 2003 Washington, USA.
To participate or not to participate? Voice and explanation effects on performance in a multi-period budget setting
Byrne, Suzanne and Damon, Fiona. 2008. "To participate or not to participate? Voice and explanation effects on performance in a multi-period budget setting." The British Accounting Review. 40 (3), pp. 207-227. https://doi.org/10.1016/j.bar.2008.04.001