Enron was one of the world’s biggest manufacturers of natural gas, oil, and electricity. Before 2002, it was considered one of the most profitable limited companies whose shares value rose from $19.10 in 1999 to $90.80 at the end of 2000 financial year. These successes is attributed to the board of directors and the top management team who always look for new ventures, partnerships, and make crucial decisions of the company. On several occasions, the company’s Chief Financial Officer, Andrew Fastow had many investments for the company and the board of directors never questioned his decisions, little did they know that despite the created partnership he in fact the major investor participating in the buying of shares and to conceal his deals he introduced a complex scheme of off-balance-sheet partnerships. Analysts in trying to go through the balance sheets did not figure out anything for the scheme was so complex and did not make sense. This was the revelation for the shareholders and it marks the downfall of Enron Company (Welytok, 2006).
