TOKYO - Good corporate governance can save businesses in crisis. It ensures management does right by the company even if it goes against their own interests.
The remarkable resurrection of Apple from the brink of business failure is a lesson in the importance of good corporate governance.
Apple was running out of funds after suffering US$800 million (S$1.1 billion) in losses on US$9.8 billion sales. Unless something was done, the company looked certain to go out of business.
That was in the year ended September 1996, according to "Boards That Lead," a book penned by Ram Charan, a famous US business consultant.
After expelling co-founder Steve Jobs, Apple released a series of unique, but uninspiring products. The company nearly went bankrupt, with a large leftover inventory.
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