Corporate Law Sandalwood Pty Ltd

Corporate Law1
Student’s Name
Name of Class
Professor
Date

Corporate Law2
Question 1.
Corporations Law
Sandalwood Pty Ltd is a business e1ntity whose foundation has been established over the years,
and it has been administered and organized according to the corporations’ law. It was determined
that the company evaded tax since 2008 running to over $7 million breaching the Criminal Code
Act section 134 of the Australian tax evasion laws. When the company receives proceeds from
its dealing in trading activities, it is obligated to pay a 30% tax to the government of the land.
With that, Sandalwood Pty Ltd has breached its legal duty and has failed to act according to the
required good faith1. To address any further tax evasion penalties, the owner of the company
should pay the $7.5 million owed to the taxman.
Contract law
A contract is enforceable when the party involved entering into a formal and legally binding
agreement2. In this media report, a contract is breached regarding the business activities Wei
Hsiung “Francis” Chen should conduct in his Sandalwood Pty Ltd firm. As the owner of the
company, the business activities which included exports and imports undertaken in the company,
should have been done per the law. The company breached the contract when they started the
illegal trading of precious sandalwood products.
Question 2
Ensures reasonable predictability in daily life
1Kraakman, Reinier. The anatomy of corporate law: A comparative and functional approach.Oxford University
Press, 2017.
2 Breyer, Stephen G., Richard B. Stewart, Cass R. Sunstein, Adrian Vermeule, and Michael Herz. Administrative
law and regulatory policy: problems, text, and cases. Wolters Kluwer Law & Business, 2017.

Corporate Law3
Criminal law provides reasonable predictability in daily conduct as it ensures all the parties
follow the stipulations and the provisions within the contract. It confers the contracting parties
the right to enjoy the activities spelled out in the contract and receive the best services and high-
quality products during any transactional process3. The government should prosecute Mr. Wei
Hsiung “Francis” Chen for not sticking to the scope of activities his company was registered to
do.
Encouraging and discouraging certain conducts
Corporate law encourages a particular way of handling that ensures that all eligible citizens
within the boundaries of a country should pay tax4. The tax authority should sue Mr. Chen and
ensure that the amount of taxes owed is paid. Criminal law prohibits certain undertakings that are
illegal and deceitful. Mr. Chen should provide the authorities with the full details of his property
and business activities conducted in his company.
Grant rights and powers to individuals and groups of people
Administrative law gives capabilities to people and groups to stop business activities. The
Australian government was right to stop Sandalwood Pty Ltd.’s trading activities.
Impose obligation on individuals to meet their legal responsibility
Administrative law requires persons and organizations to fulfill their legal responsibility like
paying taxes and engaging in legal business dealings. The federal court was right in freezing the
accounts and properties of Mr. Chen over tax evasion.
Allows for the enforcement of recognized rights and duties
3 Barnett, Hilaire. Constitutional & administrative law. Routledge, 2017.
4 Stone, Richard, and James Devenney. The modern law of contract. Routledge, 2017.