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Corporate Governance & Fraud Risk Management
book

Corporate Governance & Fraud Risk Management

by Balwinder Singh
January 2014
Intermediate to advanced content levelIntermediate to advanced
92 pages
3h 17m
English
Pearson Education India
Content preview from Corporate Governance & Fraud Risk Management
38 | Chapter 5
Unrecovered Loans
Another method by which insiders of a company
benet at the cost of other share holders is by
giving loans to the directors and the management
of the company which are left unrecovered. This
practice is not limited to India alone. Certain large
American companies collapsed or suered heavily
because of such loans—Worldcom and Adelphia.
From the point of view of the company regula-
tors, this is one of the main risks to be managed.
The Indian Companies Act 1956 puts in place re-
strictions in this regard. However, this practice of
giving loans to directors and their family members
or loans to shell companies created ...
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Publisher Resources

ISBN: 9789332540866