Example of corporate scandal

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Question

Over the past decade, we have seen a number of corporate scandals, including Worldcom and Enron. Officers and directors caught up in these scandals often defend themselves with the following "I didn't know." As I often observe in my live class, a scandal hits and suddenly a director or officer's IQ drops a hundred points.

1. Find an example of a corporate scandal and discuss whether an officer or director breached a duty owed to the corporation.

2. Was the "I didn't know defense used, and if so, was it successful?" Please explain fully.

Reference no: EM133939462

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