Case Study :

The Crisis at Tyco – A Director’s

Perspectives

Prepared By:
Waffa Wahida Binti Zainol
822360
TYCO History
Multinational Company
Founded in 1960 by
Arthur J. Rosenberg
Main Business Sectors:
Electronics
Fire & Security Services
Telecommunications
Healthcare & Specialty
Products
 A brief Case
Introduction

The case described the collapse of Tyco, from the

perspective of newly appointed board.

Wendy Lane, the female director with strong business

and investment banking background, witnessed the whole
process of Tyco going from the peak to the bottom.
 Case Summary

On September 12, 2002, the New York County District Attorney’s
(DA’s) announced a criminal indictment accusing Kozlowski and
Swartz of enterprise corruption for allegedly stealing more than
$170 million from Tyco and obtaining $430 million by fraud in
the sale of company shares.

Mark Belnick was charged separately with falsifying records to

conceal more than $14 million in company loans.

On December 2002, Frank Walsh pleaded guilty in an allegedly

scheme to hide $20 million in fees for the CIT Group Deal.
 Tyco’s Management Structure
Board Of Directors
Tyco’s Management
Internal & External Auditors
Recommendations:
Major Lessons
Thank You