In five pages this paper discusses the legal issues associated with the pension scheme activities of Enron in the aftermath of its corporate collapse. Six sources are listed in the bibliography.
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dealing in shares. However, one of the most controversial results of the scandal, and one that may effect a great number of people in the long term, is the way
in which the pension scheme was run, and the questionable tactics that were used in order to boost the apparent fund value and reduce the contributions that would need to
be made. We can argue that any pension fund is a pooled investment, and as a result the fall in a single share value should not be that influential.
Many pension fund suffered with the downfall of Enron, but the company pension fund suffered greatly, unlike many other pension fund this did not have the cautionary spread of risk.
To understand this we need to look at the situation in more detail, and then we may appreciate how this occurred and the way in which the practice may be
seen as questionable. The Enron case has demonstrated some of the shortfalls in the law regarding retirement plans. The fall of Enron has shown up problems in the way
that retirement plans are administered and controlled in terms of legislation n the US (Anonymous, 2002, Oppel, 2002). With the fall
of the company the investments that were in the retirement fund have plummeted due to the high level of investment in the companies won stock. The funds under the 401(k)
had large proportions of Enron common stock, and as a result of the bankruptcy this stock is now worthless (Heller, 2002). The first issue that this has raised is the
ability for any company to have such a large amount of their own stock, upon which they are relying for retirement, in a pension fund. This has raised alarm bells,