Governance Problems at a Troubled Company

Canadian pharmaceutical company Valeant is a troubled company. Within the last year it’s been accused of price gouging, with unconventional (perhaps fraudulent) relationships with distributors, and now with financial irregularities. Could it be that the board is in some respect to blame? >>>

LINK: Why the trouble at Valeant starts with its board of directors (by Alexandra Bosanac for Canadian Business)

Valeant Pharmaceuticals is beset with problems—a collapsing share price, mounting debt, unreliable financial statements—and it’s now jettisoning its CEO and pinning blame for shoddy accounting on a former CFO. But the role of the company’s board of directors has thus far escaped criticism, and a closer look reveals the board’s structure was less than ideal, and may have contributed to Valeant’s current woes. Despite changes to the board, Valeant still has work to do, critics say.

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What do you think?

See also (regarding Valeant) “Trust is the most valuable asset any company has”

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