North American Paper Inc. Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

North American Paper Inc Case Study Solution

Solution #2- Board Members Recruitment

Board members should be recruited on the basis of formal selection rather informal selection. Proper selection should be made according to the rules laid down in 2020 governance practices and standards. In addition to this, compensation committee should not involve any corporate affiliates and officers as prescribed in the Canada business corporation act. The board of directors should be elected by the majority consensus vote. They should be qualified, independent and competent enough to deal with day to day business requirements and challenges. Develop a list of “evergreen” suitable candidates and evaluate their performances. (See appendix 2)

Solution #3- Interest Policy

Develop an interest policy which could manage conflicts effectively and recruit a responsible person who could manage this policy in an effective way. The policy should deal according to the compliance with laws and without any fear of discrimination.(KH Chung, H Zhang , 2011)

Solution #4- Follow Legal Rules

As the EEA agreement was accepted in the third board of directors meeting and Bassey had sued NAP on the basis of this agreement. The management should follow legal practices as prescribed in the 2020 corporate governance policies which suggest that the proposal which has been accepted under informal practices should be void. The management should claim in the court that the compensation committee was consisting on the three members who were directly or indirectly associated with Bassey. Thus, NAP could discharge its debts accordingly.

Recommendations

After evaluating all the above information and situation, it is recommended that NAP should follow above aforementioned possible solutions to cope up with this intense condition. The best option is to follow legal practices and responsibilities as prescribed in the 2020 practices. Hire competent, strong and qualified board members so that they could efficientlymanagesuch conditions. Develop a list of “ever green” suitable candidates and evaluate their performances along with this adopt an interest conflict solving policy, which could safeguard all people interests. The legal practices should be followed, and the management should sue Bassey in against of it approving EEA agreement under his affiliating compensation committee members.Thus, NAP could discharge its debts accordingly.

Conclusion

NAP (North American Paper Inc.) was founded in 1976, which manufacture coated wood paper for the printing industries such as inserts, catalogs, magazines and printing applications. Erik Bassey, an American financer and lawyer, invested around $1 million USD and acquired NAP’s 4.3% stake in 2011. He had sued NAP for $27 USD million after resignation as the NAP’s SEO. After reviewing all the situation critically, it is recommended that NAP develop two-way interaction with shareholders in order to develop sense of belongingness and ownership toward the organization. Board members should be recruited on the basis of formal selection rather informal selection. In addition to this, the management should claim in the court that the compensation committee was consisting on the three members who were directly or indirectly affiliated with Bassey. Thus, NAP could discharge its debts accordingly............................

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