Corporations Act 2001

Running Head: CORPORATIONS ACT 2001 0
Corporations
Act 2001
Student’s Name
9-1-2019

CORPORATIONS ACT 2001 1
Corporations Act, 2001 (Cth)
This Act explains all the rules and regulations beginning from the incorporation of an
organization to the day to day operations. The trade culture has evolved drastically since the
commencement of this act. This discussion highlights some of the aspects of this legislation.
Question 1(a)
(i)
Title: Corporations Act 2001 - SECT 942C, Financial Services Guide given by authorised
representative--main requirements.
Hyperlink: http://www5.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s942c.html
Date Accessed: 12th September 2019.
(ii)
The section 942C, of Corporations Act 2001 specifies the main guidelines that need to be
followed in order to run a financial services transaction. It clearly states, the important
requirements that need to be fulfilled in order to provide as well as accept the financial
services by the authorized representative. It includes the details like basic documentation,
remuneration involved, parties involved, process of licencing and as such. Section 942C,
talks about the processes involved and things to be taken care of while financial services are
being transacted (Fedral Register Of Legislation, 2010).

CORPORATIONS ACT 2001 2
(iii)
The penalty applicable upon breaching of Section 942C (8) of Corporations Act 2001,
includes either one-year imprisonment or 5 penalty units or even both (World Intellectual
Property Organization, 2015).
Question 2 (a)
(i)
Australian Securities and Investments Commission v Ostrava Equities Pty Ltd [2016] FCA
1064
Hyperlink: http://www6.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/FCA/2016/1064.html?
context=1;query=ostrava;mask_path=au/cases/cth/FCA
Date Accessed: 12th September 2019.
(ii)
As per the declaration by court, the contravention by the First Defendant was that, in
February 2014, Richard Stringer and in 2010, William Tobin were not at all dated with the
financial services guide in question as per the demand by section 942C, subsection (5).
The financial services guide provided in January 2014 to clients WP and KE were again
misdated as per the section 924C, subsection (5). Also, it did not disclose the detailed level
of information required by section 942C, subsection (3) and it was not specifically cleared
out in an effective manner as was inflicted by the Section 942C, subsection (6A) as
mentioned in (Federal Court of Australia, 2016).