ASSINGMENT ONE

UUL Co is a public water supply company which was privatised a number of years ago. As the deputy Finance Director you are reviewing the draft financial statements which contain the following statement by the chairman: 'This company has delivered above average performance in fulfilment of our objective of maximising shareholder wealth. Earnings, dividends and the share price have all shown good growth. It is our intention to continue to deliver strong performance in the future'.

Required:

(a) Identify three key stakeholders, other than the shareholders, in a company such as UUL Co LTD. Identify what financial and other objectives the company should aim to follow in order to satisfy each of these stakeholders. (6 marks)

(b) Identify what government intervention and other regulation UUL Co LTD may suffer and how this will impact upon the company