Power without responsibility
Recent corporate scandals such as WorldCom have awakened interest in the possibility of investors suing directors of corporations for misconduct. Jan Harvey says, however, that in the UK getting a successful case is not as easy as it seems
It was an image that must have struck fear into the hearts of company directors across the globe: Scott Sullivan, former chief financial officer of the telecoms giant WorldCom, being dragged from his offices in handcuffs to face federal charges of securities fraud. WorldCom had crashed and burned in spectacular style two months earlier, after executives admitted they had inflated profits by $7bn (£4.5bn) during 14 months.
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