ABSTRACT
The case-study company, Fox River, is part of a renowned scientific research institute, Illinois Group, based in the UK. The wholly owned commercial company is one of seven subsidiaries and is classed as a small company by United Kingdom company law. The senior management of Fox River consists of a company secretary and seven directors: the Managing Director, the chairman and five sleeping directors who took no active part in the company’s day-to-day management. The company also pays for their share of head-office accounting services, that is, a proportion of the salaries of Brad and Caroline. Brad, a member of one of the UK Institutes of Chartered Accountants, is the Finance Director of Illinois Group and is responsible for the financial reporting of the group and its subsidiaries. He is also the Company Secretary of Fox River.
