Call 0 for One. Tel
by Corine Tay, Krishnasruthi Srivalsan, Color Huijie, Teng Yun Rollator walker, Yee Guan Wei and Yong Lin Lin under the supervision of Professor Mak Yuen Teenage and Doctor Vincent Chen Yu-Shen. The situation was developed by published sources solely pertaining to class discussion which is not designed to serve as pictures of powerful or inadequate management or perhaps governance. The interpretations and perspectives in this case are not always those of the organisations called in the case, or any of their owners or workers. This abbreviated version was edited by simply Low Jiemin under the direction of Teacher Mak Yuen Teen. Case Overview
One. Tel was the last largest telecommunications company in Australia before its collapse in 2001. The management of 1. Tel was able to conceal indications of financial distress in the company, arguably as a result of poor corporate and business governance in several areas, which include board formula, board committees, internal regulates, audit, and executive remuneration. The objective of the case is to enable a discussion of issues including board self-reliance, board committees, executive remuneration, role of auditors and regulatory observance. One. Tel: the Beginnings
One. Tel was an Australian telecommunications firm founded simply by Rodney Adler, Jodee Rich and Brad Keeling upon 1 Might 1995. Created soon after the 1993 deregulation of the Aussie telecommunications sector, One. Tel positioned alone as a low priced mobile phone company. The company successfully launched a basic public giving to sell its shares around the ASX in A$2 per share, lower than three years after it was founded. 1 1. Tel's business design was depending on reselling surplus phone capability purchased from major telecommunications companies, such as Telstra and Optus. By engaging in predatory pricing, hostile marketing and also liberal extension of credit rating to clients, One. Tel aimed to secure a large business in terms of quantity of customers. By the financial season (FY)...