Business Law Assignment - Mariner Corporation Limited

Added on - 28 May 2020

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Running head: BUSINESS LAWBusiness lawName of the StudentName of the UniversityAuthor Note
BUSINESS LAW1Table of ContentsCase Introduction.............................................................................................................................2Duties breached by the directors of Mariner Corporation Limited as alleged by the ASIC...........3Critical analysis of the decision provided by the court in this case.................................................4Future relevance of the case............................................................................................................8Bibliography....................................................................................................................................9
BUSINESS LAW2Case IntroductionThe case ofAustralian Securities and Investments Commission v Mariner CorporationLimited [2015] FCA 589is in relation to the breach of directors duties. The proceeding is relatedto the legality of the defendants’ conduct of making a takeover bid. The proceeding is not only inrelation to the company but also three of its directors namely Mr Darren Olney-Fraser, MrDonald Christie and Mr Matthew Fletcher. The action has been brought with respect to thebreach of Section 631 (2)(b), 1041H and 180(1) of the Corporation Act 2001 (Cth) (CA).Declarations have been sought by the ASIC against all the defendants in the case and specificallydisqualification from management and pecuniary penalties against the individual directors. Thetrial was only in relation to the liabilities of the parties and issues in relation to penalties andrelief were to be heard latter1.In this case it has been alleged by the ASIC that the defendant company violated theprovisions provided by section 631 (2) (b) of the CA. The allegation was based on the fact thatthe company publicly proposed a takeover bid for Austock, recklessly without informing itselfthat whether it has the capability of performing its obligations and relation to the takeover bid at10.5 cents for each share in case considerable proportion all the offers with respect to the bid areaccepted. It has been provided by the ASIC that the organisation did not have financial resourceson 25thJune 2012 to fund the bid and in addition had not received relevant assurance from anythird party as well as it did not have any agreement with any third party in relation to provisionsof the required funding.1[2015] FCA 589 at 1
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