Topic 2: Roles and Responsibilities of Board of Directors
and Management to Master Ethical Challenges
  • The board of Manfold consisted of friends and relatives of the founder of the company. They had known the Chairman, Joseph WAN, for a long time.

  • For example, the Chairman Joseph WAN, the INEDs Fred WONG and Matthew IP as well as the Managing Director (MD) Daniel KOT, all belonged to the same schools or social club.

  • Matthew asked Fred, Chairman of the audit committee, to keep the meeting short as he had to attend another meeting. He also said that the discussion and decision at the meeting were only formalities.

  • At the audit committee meeting, Sherona LEUNG, an INED, questioned the financial figures, including whether the liberal credit policy would increase Manfold's level of risks and if the sales growth could be sustained. When the Managing Director and President of Mainland Operations gave her their assurance, she did not pursue the issue further. Nor did other directors.

  • Joseph WAN, the Chairman, played a very dominant role in the operations of the company. He told the Managing Director and the President of Mainland Operations to do their best to improve their financial figures within a short period of time.

  • Matthew IP, an INED of Manfold, sat on 15 boards.