4) Identify the stakeholders who were most disadvantaged by the collapse of Polly

Peck.
There are several stakeholder who are involve in this case. Firstly are the shareholders.
The shareholders are the true owner of the company. The shareholders have lose their
confident to invest in polly peck. Trading in the companys shares was suspended on 20
September 1990. Polly Peckn problems became apparent from the structure of the group's
debts. The company had over 100 million in short-term revolving lines of credit. Even more
debt consisted of long term loans for which Nadir had offered Polly Peck's shares as
collateral.
Next are the employees. With pre-tax profits of 161.4 million, net assets of 845 million
and 17,227 employees, the Polly Peck group was one of Britain's top one hundred quoted
companies. Polly Peck and its subsidiaries were the largest employer in northern Cyprus
(after the state) with 7,500 employees there. Based on collapse of polly peck the employees
will lose their job.
Lastly are the auditors. The groups auditor, BDO Stoy Hayward ultimately admitted in
2002 to 10 complaints arising from its audits of Polly Peck in 1988-9, and was fined 75,000
with 250,000 costs by the Joint Disciplinary Scheme. Audits of Polly Peck subsidiaries in
Northern Cyprus and Turkey were carried out by local firm Erdal & Co, three of whose
partners were also ordered to pay 125,000 towards the cost of the JDS investigation.
Besides, that was be effect personal banking services for certain Turkish and Northern
Cypriot residents. The auditors described this arrangement as "extremely unwise
transactions". On top of these massive money transfers and "unwise transactions", the
regulators found that some of Polly Peck's assets had been secretly registered in Mr Nadir's
name. These were all in Northern Cyprus and had a net book value of 25.5m in 1989. In
addition the Didima Hotel development in Northern Cyprus, valued at 15.5m, and 6.7m
worth of other buildings, had no registered owner. Nadir said he was holding the assets "on
trust" for Polly Peck businesses.