The global retail group Steinhoff is reeling under allegations of accounting fraud. Since the allegations surfaced in 2017, the CEO of the multibillion dollar business, Markus Jooste, has fallen on his sword and the company’s stock has been hammered, at one point losing about 90% in market value in a few days. Observers are calling for harsh punishment, including jail, for the culprits. Early reports suggest that Steinhoff was involved in massive accounting fraud, including the overstatement of the company’s financial position. The company is listed on both the JSE as well as the Frankfurt Stock Exchange in Germany. With a primary listing in Frankfurt and an Amsterdam corporate address, Steinhoff follows the Dutch corporate governance code. Consistent with this code, Steinhoff has a two-tier board structure. This is made up of a management board (comprising four top executives) and a supervisory board (comprising nine nonexecutive directors). The point of the two-tier board structur...
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