POCKETING THE GREENS Every incorporator has their own responsibilities towards the company they are serving. Also, every company faces its own problems and the success of the business relies on how the management handle these problems. This case study is about how the directors try to solve the problem of the company. 1. Immediate Issue(s) or Problem(s) The main issue in the case is about the conflict of interest when Mr. De Guzman and the two other directors who processed the transactions convinced Dr. Gonzales to sell the shares to them instead when Cheap Pharma cannot pursue the plan due the problem in one of its factories. With this, it turned out that the directors took advantage of the weakness of the company they are serving. 2. Basic …show more content…
De Guzman and the two other directors to sell their shares to Cheap Pharma when the company already recovered from the experience that the company experience without filing a lawsuit cases. Aside from this, Cheap Pharma can also insist with its plan to sue Mr. De Guzman and the two other directors but of course it will be costly, and it will waste a lot of their time than negotiating. 5. Recommendation(s) and Implementation To be able to eliminate the conflict of interest, Mr. De Guzman and the two other directors can sell their shares with Cheap Pharma and pursue with the original plan to improve its product line and use its patents. It will not only increase the shares of the directors but will also help the company achieve its goals. 6. Monitor and Control To be able to determine if the recommendation and implementation plan are working, Cheap Pharma can hire a product specialist for the proposed product line using both Cheap Pharma and Green Med’s patent. The product specialist must submit a timely report to see the effectiveness of the plan. Also, to avoid conflict of interest, every employees should be transparent to their sources of income to trace whether it is possible for a person to be involved in a conflict of interest