The Enron Pension Jigsaw: Assembling Accountable Corporate Governance by Fiduciaries

Faculty Author Type

Emeritus Faculty [Ronald Davis]

Published In

University of British Columbia Law Review

Document Type

Article

Publication Date

1-1-2003

Subjects

Pension funds; corporate governance; conflict of interest

Abstract

This article explores the extent to which the potential and actual conflicts of interest that pervade pension fund administration and investment have influenced the corporate governance activities of these funds. The exploration of these issues is situated in the context of the events surrounding the collapse of Enron and the devastating effects of that collapse on the pension rights of Enron's employees. The ability of conflicts of interest to influence outcomes in respect of corporate governance activity, as well as the degree of imprudence exhibited in the permitted investment choices of certain retirement plans, raises concerns about the efficiency of fiduciary duty as a means to control these conflicts.

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