Corporate Legal Issues (doc)
Added on 2020-05-28
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Running head: CORPORATE LEGAL ISSUESCorporate Legal IssuesName of the StudentName of the UniversityAuthor Note
1CORPORATE LEGAL ISSUESTable of ContentsPart 1:........................................................................................................................................2Issues recognized that are related to crown:.....................................................................2Role of ASIC related to the issue:.......................................................................................3Remedies for relevant issues:..............................................................................................4Bibliography:............................................................................................................................6Part 2:........................................................................................................................................7Bibliography:..........................................................................................................................11
2CORPORATE LEGAL ISSUESPart 1:Issues recognized that are related to crown:All the directors and officers of a company have a duty to direct their operationstowards the profit of the organization and also towards its best interest. The Corporation Act2001 (Cth) (The Act) governs the operations of the directors that are related to anOrganization along with other common law provisions. Several provisions exist that havebeen laid down in the legislation towards governing the actions of the directors. Statutoryduties of the directors set out by the CA are mentioned under the section 180-184 of the Act.According to the provisions that are laid down by section 180(1) of the said Act, the directorsare bound to discharge their responsibilities and duties towards the organization with dueskills and attentiveness1. The activities of the directors related to the provisions of section180(1) of the Act are evaluated based on objective rather than subjective. Thus, an imaginaryperson having an aptitude of a director is positioned o the director. Moreover, the actions ofthe director are analyzed based on the actions that the imaginary director would have taken insame position. It had been ruled by the court in the case of AISC v Cassimatis2 that anydirector under any reasonable circumstances in any situation will not violate a legal provisionand therefore such an act cannot be sanctioned by the shareholders.It has been produced in an article that Crown Resorts Ltd has sent agents to China forthe purpose to recruit gamblers. Gambling is banned in China and hence it is treated as apenal offence3. Previously, these agents used to go to mainland china and hired gamblers tocome and play in the resorts of Australia. The Chinese officials arrested the employees of the1 Corporation Act 2001 (Cth) at section 180(1).2 (No 8) [2016] FCA 1023.3 '“Big Gambling”: The Rise Of The Global Industry-State Gambling Complex' (Taylor &Francis, 2018) <http://www.tandfonline.com/doi/full/10.3109/16066359.2014.929118>accessed 4 January 2018.
3CORPORATE LEGAL ISSUESCrown resort. In addition to this, the share value of the organization has witnessed a steerdrop of 14%. The investors and shareholders of the company planned to take rigid actionagainst the directors. From these factors it can be assumed that the directors of Crown havenot complied with the provisions o section 180(1) of the Act. Therefore, it can be said thatdue to a reasonable director it would not undertake illegal actions in relation to the companyand these activities are not with the observation of due ability and diligence. Role of ASIC related to the issue:Australian Security and Investment Commission (AISC) are a corporate supervisorand governor of organizations that operates within Australia and are registered with theAustralian Securities Exchange (ASX). The ASIC monitors financial services, integratedcorporate actions and consumer and market credits within the Australian territory. Theindicator focuses to make scope for the market in order to enhance economic growth andfund the economy. The monitor determinates to ensure financial well being within theAustralian community4. The regulator along with the efficient functioning of marketpromotes the trust and confidence of the investors and consumers. The commission strives fororders like suspension from management and financial penalties from the managementtowards the ones who are found guilty of non-compliance with corporate legal framework.The article provides that the Chinese officials due to the illegal activities committed by themin China have arrested a few employees of Crown5. Hence, it is the duty and role of theindicator to conduct an investigation related to the situation. Later it was classified thatCrown was registered with ASK and hence ASIC had to conduct an investigation in relationto the accusations. The ASIC had to take actions in order to secure and protect the4Our role | ASIC - Australian Securities and Investments Commission. (2018). Asic.gov.au.Retrieved 3 January 2018, from http://asic.gov.au/about-asic/what-we-do/our-role/5'Home, James, And Don’T Spare The Horses: The Inevitability Of A Second SydneyCasino'(Taylor&Francis,2018)<http://www.tandfonline.com/doi/abs/10.1080/07293682.2017.1319394> accessed 4 January 2018.
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