BLO 2205 Corporate Law Principles
11 Pages2510 Words206 Views
VICTORIA UNIVERSITY
BLO 2205 Corporate Law (BLO 2205)
Added on 2019-11-12
BLO 2205 Corporate Law Principles
VICTORIA UNIVERSITY
BLO 2205 Corporate Law (BLO 2205)
Added on 2019-11-12
ShareRelated Documents
Running head: CORPORATE LAW Corporate LawName of the StudentName of the UniversityAuthor note
1CORPORATE LAWDiscussion a)The Board of Ardent has liable for the fatal accident and subsequent crisis which has beenoccur due to a tragic accident in Dreamworld due to the accident the a number of patronshas been died when one ride has been faced an accident. Therefore the operator and ownerof the Ardent Leisure Ltd has been faced several criticism due to the failure to the duty ofcare1. According to the Corporate Governance processes it helps to maintain the actual structure ofthe corporation which sets the rules, constitution, and system to process. It basically has formedfor the maintenance and controlling the corporation2. The ASX has provided such rules under themechanism of the company which helps to make the corporation in the promotional investorsmore confident while it applicable under the legislations3. In the Principle 7 of the Corporate Governance provides the legislations wgich helpsx tomaintain and control every risks and hazards which has forms the rules for the oversight therisks, management and other internal control. Under the Principle 7 the Corporate Governancehas helps and establishes the implementation and every annual review regarding the every issuesand other controlling management in the risk factors4. It is also comes under the CorporateGovernance that the Audit Committee is appointed while it is necessary to analysis the businessrisks in the risk management policies5. 1 Ali, Searat. "Corporate governance and stock liquidity in Australia: A pitch." Journal of Accounting andManagement Information Systems 15.3 (2016): 624-631.2 Beekes, Wendy, Philip Brown, and Qiyu Zhang. "Corporate governance and the informativeness of disclosures inAustralia: a re‐examination." Accounting & Finance 55.4 (2015): 931-963.3 ArAs, GülEr. A handbook of corporate governance and social responsibility. CRC Press, 2016.4 Beekes, Wendy, Philip Brown, and Qiyu Zhang. "Corporate governance and the informativeness of disclosures inAustralia: a re‐examination." Accounting & Finance 55.4 (2015): 931-963.5 Ali, Searat. "Corporate governance and stock liquidity in Australia: A pitch." Journal of Accounting andManagement Information Systems 15.3 (2016): 624-631.
2CORPORATE LAWHere the risk has been identified through the internal control system of the board where thecontrol the whole units and investment appraisal regarding the financial controls a d otherprocedures of the capital expenditure for the annual budgets and appraisal, due diligence whichare the basic requirements of the companies. There are several risks gas been control under theCorporate Governance which includes credit risk, operational risk, liquidity risk, equity, cyberrisk, fraud risks and security risk where they are control by the risk management systems6. The Ethical Standard Manuals has been set through the quality and integrity of Personnelwhich interfere in the controlling the business management7. While operating the risk in themanagement organizations the board rules and constitution is helps to operate, control andmentoring the risk factors. Ardent Leisure Ltd has their own set of managing authority wherethey work on the risk factors which are related with the corporation. However due to the suddenissues their management authorities have been criticized where a major fatal accident occurs anda number of patrons are died due to the major accident. Now the authority has failed to operatethe board of management. According to the Principle 7 in the Corporate Governance, themanagement authorities have using the risk management where they are bound to control thewhole operating business in the risk issues. The risk management authority has been applicableunder the Principle 7 of the Corporate Governance. Now the Ardent Leisure Ltd has bound tocontrol such risk but they have been failed while operating the principles ethics in the riskoversight and management and internal control8. 6 Beekes, Wendy, Philip Brown, and Qiyu Zhang. "Corporate governance and the informativeness of disclosures inAustralia: a re‐examination." Accounting & Finance 55.4 (2015): 931-963.7 ArAs, GülEr. A handbook of corporate governance and social responsibility. CRC Press, 2016.8 Ali, Searat. "Corporate governance and stock liquidity in Australia: A pitch." Journal of Accounting andManagement Information Systems 15.3 (2016): 624-631.
3CORPORATE LAWb)The Board of directors of Ardent Leisure Ltd has been criticized due the failure to managingthe risk factors. The directors and other board members carry the responsibilities of thecompany9. Therefore if it has been found that the board has failed to control the riskmanagement then the directors and other members of the boards are also held responsiblefor the failure of the management system10. The Australian Securities Exchange (ASX) which is the part of the CorporateGovernance has legislate the Principle 7 for the reorganization and managing risk where thecompanies has been bound to control the whole constitution, rules and monitoring system ofrisk oversight and management and internal control11. Therefore the duty of the company is to maintain the duties where it is required to controlthe risk Management system under the corporate governance. Therefore when the duties of thecompany have been breached and cause the responsibilities for failure to manage the risk factorswhere any accident or damage has been occur. When the damage has been found under thecorporate governance then the company will breach the principle 7. When the breach has beenfor the failure management of the corporate governance then it will order to pay the penalties forthe damage and treated as compensation under the Corporation Act. Under the duty of the boardthe constitution of that particular company will applicable under the corporate governance. Thetakeover Panel Decision and Policies of the company are also parts of the Principal 7 of theCorporate Governance12. 9 Graw, Stephen, et al. Understanding business law. 2016.10 Beekes, Wendy, Philip Brown, and Qiyu Zhang. "Corporate governance and the informativeness of disclosures inAustralia: a re‐examination." Accounting & Finance 55.4 (2015): 931-963.11 Ali, Searat. "Corporate governance and stock liquidity in Australia: A pitch." Journal of Accounting andManagement Information Systems 15.3 (2016): 624-631.12 ArAs, GülEr. A handbook of corporate governance and social responsibility. CRC Press, 2016.
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
BULAW5915 - Corporate Law Report - Ardent Leisure Ltdlg...
|11
|2516
|119
BLO 2205 Corporate Law | Assignmentlg...
|12
|2613
|57
Case study on activities of Ardent Leisure Ltd in context of corporate governance 2017lg...
|14
|2675
|120
Risks and Implement Effective Measureslg...
|12
|2603
|33
Risk Management Principle 7 of the Australian Securities and Investment Commissionlg...
|11
|2715
|35
BLO2205 - Corporate Law | Case studylg...
|11
|2515
|156