Company Law Case Study: Breach of Contract by Big Star Energy Ltd

COMPANY LAW

• INTRODUCTION
• FACTS
• ISSUE
• RULES
• APPLICATION/ ANALYSIS
• CONCLUSIONS
• REFERENCES
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TABLE OF CONTENTS

INTRODUCTION
• The case is about a public listed company “BIG STAR ENERGY LTD” on which the
Australian Securities and Exchange Commission (ASIC) puts an allegation under the
breach of contract act that the company didn’t abide by the rule of law as it failed to
disclose the true information about the purchaser in the agreement of sale.
• The director of the company was also involved In this case and was help responsible for
the legal obligations.
• The case was held at THE FEDERAL COURT OF AUSTRALIA and the judgement was
passed by the honourable justice Banks Smith.
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FACTS
• The case deals between ASIC and ANTARES in which various facts and information have
been revealed during the time of judgement. It can be viewed as:
• The details of the purchaser was not been disclosed in the agreement.
• The company didn’t revealed the details about the financial transaction related to the
contract.
• As after the company made the announcement of the sale of assets, there was a sudden rise
in the share prices of Antares.
• A request to disclose the information was made by ASX which was then refused stating that
it would hamper the completion of sale.
• Mr Cruickshank, the director of the company also failed to exercise his duty and despite of
knowing everything he didn’t took any steps to resolve the issue.
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