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The ASX Business Law

   

Added on  2020-03-23

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Running head: BUSINESS LAWSBusiness LawsName of the studentName of the universityAuthor note
The ASX Business Law_1
2BUSINESS LAWSQuestion A. It is required by a company listed in the ASX to establish a suitable framework thatsolely concentrates over the degrees of management of risk in the bounds within the entity, suchlaws are clearly stated in the ‘Principle 7 of the Corporate Governance.’ It is required by thelaws of the ASX that the said entity’s directorial board has to, by all the power bestowed upon it,act to the culmination of various processes and steps that would be taken into action when andonly when a risk factor is discovered, in order to solve possible issues1. The failure to provideaccurate judgment and recognition to the factors of risk may not only lead to the downfall in thegoodwill of a company in the society, but will in all cases lead to the withdrawal of investors andpotential investments, workers, consumers and every other factor. When the above discussion is taken in relation with the company in the question, thatis Ardent Leisure, it is seen that in the Dreamworld incident, the entity had not only refrained totake proper actions immediately, but it is clearly seen that the directorial board had made nonecessary measures in the incorporation of a suitable risk management framework. It can berightfully said that the company in question made no attempt in recognition of risk and tried toresolve it in any way. It is bound by the stringent laws of the ASX that every company has to create aseparate committee that would only concentrate its said powers that are bestowed upon it by thedirectorial committee in incorporation of the will of the Principle 7 and ASX and examining riskfactors and creation of precautionary measures. It is willed by the law that such a committee will1Council, ASX Corporate Governance, and A. S. Exchange. "Corporate governance principles and recommendations . ASX Corporate Governance Council." (2014).
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3BUSINESS LAWShave three separate directors controlling it. The review and incorporation of such laws are strictlyobeyed by the directors. In context to what was discussed in the previous paragraph, it can be clearly said thatthe company, Ardent Leisure, had had no proper framework for the said management of risk andhence, was unable to take even the slightest action when and after the accident occurred. Notonly did the said entity fail to recognizing the factors of risk, but couldn’t take a proper step inorder to mitigate the damage. Its actions can be clearly blamed upon the directorial board of thecompany and deserved the backlash that it so strongly received. It is necessary by law for company to maintain a good corporate governance, unlikethe company in question, Ardent Leisure. Stringent laws are to be incorporated such that thevarious functions and relationships with its bounds can be taken care of. It helps in keepingaccountability of the workers and the ones controlling the processes in the said corporation2.Investors are attracted to a company with a strong Corporate Governance scheme. As judged by what was stated in the previous discussions, it can be said that thecompany, lacking a proper risk management framework, caused the accident and failed toincorporate any measures in order to mitigate it. It is a law of ASX that the owner/occupier of aproperty is responsible for any kind of damage done to any human life, whether injury or deaththat is caused inside his premises and has to take measures in order to mitigate them. But, In thecase of Ardent Leisure, the company failed to introduce any such measures as there was noframework to support it3. Hence, the avoidable accident turned to a disaster. Question B. 2Booth, Simon A. Crisis management strategy: Competition and change in modern enterprises. Routledge, 2015.3Council, ASX Corporate Governance. "Corporate Governance Principles and Recommendations, 3rd edn (ASX, Sydney)." (2014).
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