A reckless waste of firm's assets by speculating on the stock market and incompetence/negligence in managing business of Lee Ltd., apart from omission, or perversion of truth and failure to file information and report we

Note regarding differences between Fraud and Non-Compliance: A fraud is always intentional, however, a non-compliance may be intentional or unintentional. The term fraud can be defined as act or course of deception, an intentional concealment, omission, or perversion of truth, to: gain unlawful or unfair advantage; induce another to part with some valuable item or surrender a legal right; or inflict injury in any manner. Willful fraud is a criminal offense which calls for severe penalties, and its prosecution and punishment. However, incompetence or negligence in managing a business or even a reckless waste of firm's assets (for example by speculating on the stock market) does not normally constitute a fraud. Non-Compliance: The term non-compliance refers to failure to comply with the laws, rules, regulations etc. The term non-compliance is commonly used in regard to a failure to meet the compliance requirements or failure to doing compliance be it the failure in following procedures, filing of information, eligibility conditions, reporting etc. The relationship between Fraud and non-compliance can be constructed as the non-compliance in the company may lead to a fraud, however it may also be noted that the fraud can also be made in the compliant company.