Hypothetical ILAC Case Study-Free-Samples-Myassignmenthelp.com

Questions: 1.What type of Companies are allowed to use the letters N.L. after their name? What do these letters indicate? 2.When is money considered to be unclaimed in a bank account? Which government website would you use to search for unclaimed money? 3.On 16 February 2005 Rodney Adler pleaded guilty to charges. How many criminal charges did he plead guilty to? What would have been the standard of proof that the Department of Public Prosecutions (DPP) would have had to meet if he had not pleaded guilty? 4.Using the ASIC Connect website, search for a company called Albus Holdings Pty Ltd. What is the ACN for this company? What was the companys former name? 5.Harry the Potter is a registered business name. Using the ASIC Connect website, what is the ABN for this business? In which state is the business located? Answers: Issue The conduct of the directors is regulated by the Corporations Act 2001 which bestows certain duties. Taking the given facts into consideration, the issue is to determine if there has been a violation of these duties which can potentially lead to civil liability. Additionally, the conduct of the directors needs to be viewed in the light of the common law. Law The Corporations Act 2001 bestows certain duties on directors which they are required to comply with these duties or for some of these civil liabilities could be applicable. The various duties whose breach tends to lead to civil penalties are highlighted below. In accordance to Section 181, the directors are supposed to discharge their duties in good faith and requisite due diligence. This arises from common law where the agent is required to exhibit duty to care towards the principal (ASIC v Adler(2002) 20 ACLC 576) In accordance to Section 182, the directors are not supposed to use their position and the underlying influence for bringing gains to self, others or to the detriment of the company. In accordance to Section 183, the directors are not supposed to use any information which they gain due to their position for bringing gains to self, others or to the detriment of the company. In accordance to Section 191, the directors are supposed to disclose any particular personal interest that they might have in any contract that the company may intend to enter into (ASIC v Adler(2002) 20 ACLC 576) In accordance to Section 192, for a proprietary company, the director having personal interest can only participate in the deliberations of a matter of personal interest or conflict of interest only when the same has been disclosed to the board prior to the meeting Violation of any of the duties highlighted above would lead to civil penalties particularly in terms of monetary fines for the erring director along with disqualification for a limited period or indefinitely by ASIC. Application The conduct of the two directors has been analysed through the lens of the relevant law described above to resolve the issue. Hermione It is apparent from the given fact that she got the information regarding NQT entering into a contract with the government for supply of 20 tractors from the CEO on account of her privileged position. Clearly, the information is of confidential nature as it is not available in the public domain. However, Hermione tried to benefit from this information by buying shares of NQT in the hope of capital appreciation. This amounts to violation of s. 183 of Corporations Act 2001. Ginny In the given case, Ginny had a personal interest in the company entering into a contract with Ethical Ads Pty Ltd since the company was owned by his husband and sister-in-law. However, Ginny violated s. 191 by not disclosing this personal interest to the board. Considering that Ethereal Energy is a proprietary company, s. 192 has also been violated by Ginny since she participated in the board meeting dealing with the contract with Ethical Ads without disclosing her personal interest in the deal. Also, s.181 and s. 182 seem to have been violated since non-disclosure of her personal interest may be on account of Ethical Ads not being an appropriate choice for Ethereal Energy. Conclusion Based on the above discussion, it is apparent that both Ginny and Hermione have violated the duties of directors through their conduct whereby the former did not disclose the personal interest and hence did not act in good faith while the latter used privileged information for personal gains. As a result, it is apparent that civil penalties would be levied on the two. Further, in accordance with the common law, the directors have failed in their duty to care towards the shareholders. 1.N.L. stands for no-liability and it can be used only by a mining company for which the unpaid share capital cannot be called as defined under the Corporations Act 2001. 2.In accordance with the relevant laws, unclaimed money refers to the money in the bank account which has been inactive (i.e. no withdrawal or deposit of money) for a period of atleast seven years. The smartmoney website of ASIC can be used to search for unclaimed money. Link: www.moneysmart.gov.au 3.Adler pleaded guilty to four criminal charges with two related to disseminating information, one related to raising money by making false statements and one related to failure to discharge the director duties and also being dishonest intentionally. The evidence should be beyond reasonable doubt considering the charges are criminal. 4.ACN number is 114457402 Former name of the company is Equus Albus Holdings Pty Ltd. 5.ABN number is 17009695121. The business is located in Queensland.