- 5 Marks
CR – May 2023 – L3 – Q6b – Ethical Issues in Corporate Reporting
Discuss the ethical implications and possible actions for alleged unethical behavior in a corporate takeover.
Question
On your first day at Omoge Nigeria Plc as the Chief Financial Officer (CFO) of the company, you were sitting in the staff canteen where you overheard a conversation between two Admin Officers. They were gossiping about Mr. Adamu Salisu, the Finance Director.
According to their conversation, Mr. Adamu Salisu may have been involved in unethical activities related to Omoge Nigeria Plc’s takeover of Bobo Limited.
Key details include:
- Mr. Salisu’s wife, Mrs. Salisu, was a director at Bobo Limited prior to the takeover and owned 30% of its shares.
- It is alleged that Mr. Salisu substantially overpaid for Bobo Limited and facilitated the overpayment to benefit his wife.
- The alleged unethical act involved colluding with his wife to falsify records submitted to the accountant conducting due diligence for the takeover.
- Mr. Salisu is reportedly not well-liked by staff, who consider him intimidating and appear pleased at the prospect of him losing his job.
Required:
Discuss the ethical implications of the above and the possible actions that may arise from the incident. (5 Marks)
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