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BX2112 Issues in Business Law Assignment

   

Added on  2020-05-28

8 Pages1791 Words33 Views
Running head: BUSINESS LAWBusiness LawName of the StudentName of the UniversityAuthor Note
BX2112 Issues in Business Law Assignment_1
1BUSINESS LAWTable of ContentsPart A...............................................................................................................................................2Issues faced by crown resorts......................................................................................................2Role of AISC...............................................................................................................................2Possible Remedies.......................................................................................................................3Part B..............................................................................................................................................4References........................................................................................................................................8
BX2112 Issues in Business Law Assignment_2
2BUSINESS LAWPart AIssues faced by crown resorts The directors of a corporate organization have the duty to act in the best interest of thecompany. Section 180(1) of the Corporation Act 2001 (Cth) instructs the directors and officers ofa company to deploy care and diligence in relation to their operation. Such care and diligence isevaluated by appointing a hypothetical person as a director in the same situation and analyze thereasonability in relation to the decision1. The decision has to be in the best interest of thecompany. In the case of ASIC v Cassimatis2 it had been stated that any reasonable director willnot breach the law of the land in any condition. Even the shareholders do not have the power toratify such acts. In the given situation the directors of crown sports have violated legal provisionsby sending agents to china in order to recruit high roller gamblers where gambling is illegal inchina. In relation to such action employees of the organization have been arrested by the Chinesegovernment which also includes Australians. In addition there has been a 14% decline in theshares of the organization which has subjected the company and its shareholders to major losses.The company has also suffered reputational loss because of its actions. In the given situation thecorporate legal issues which are faced by the directors of crown resorts are in relation to thedirectors duties violated by them. The directors as discussed above have breached section 180(1)of the CA by not acting with diligence and care in relation to the affairs of the company. Role of AISC The Australian Investment and Security Commission is a corporate watch dog inAustralia. It has the duty to keep an eye on the affairs of corporate organizations. The AISC1 Corporation Act 2001 (Cth) at section 180(1) 2 (No 8) [2016] FCA 1023
BX2112 Issues in Business Law Assignment_3

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