Abstract

This paper argues how boards of directors of three Icelandic oil companies were kept in the dark while the companies were collaborating in illegal competitive behaviour. The paper offers a unique view into a situation where information or lack thereof has played a key part in corporate governance, exploring the relationship between management and the board of directors and how information filtering can go wrong to the extent that vital information does not reach the board. The paper is based on a case study of the illegal collaboration of the oil companies. It furthermore surveys the literature on information flow and information asymmetry for explanations of what happened in the case of the Icelandic oil companies.