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Corporations Law Assignment Sample

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Added on  2021-06-16

Corporations Law Assignment Sample

   Added on 2021-06-16

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Running Head: CORPORATIONS LAWCORPORATIONS LAWName of the Student:Name of the University:Author Note
Corporations Law Assignment Sample_1
1CORPORATIONS LAWCase Summary:Australian Securities and Investments Commission v Healey and Others[2011] FCA 717Case Introduction:The Australian Securities and Investment Commission (ASIC) had commenced proceedingsagainst the directors, Chief Financial Officers of the Centro Property Trust (CPT), CentroProperties Limited(CPL) and Centro Retail Trust (CRT). The ASIC had alleged that the directorsand the chief financial officers of the Centro group of companies had contravened the provisionsof the section 180(1), 344(1) and 601FD (3) of the Corporations Act 2001 (Cth). The ASICalleged the directors and the chef financial officers had approved the consolidated financialstatements of the group of companies for the financial year ending of 30th June 2007 at the boardmeeting which was attended by the aforementioned directors. However, the annual reports of theCentro group of companies had failed to disclose relevant and significant matters. In this case,the report that had been submitted by Centro Properties Group failed to disclose the short termliabilities amounting to 1.5 billion dollars of the company. The short term liabilities had beenclassified as non-current liabilities. Further the companies failed to disclose guarantees of shortterms liabilities of an associated company of 1.7 billion of US dollars which had been given afterthe balance date. The Centro Retail Group had also failed to disclose short term liabilities of fivehundred million which had been classified as non-current liabilities. Due to the failure todisclosure of the significant matters, the value of Centro Securities had been significantlyreduced. In this case ASIC had brought actions against Healey, the first Defendant, the CEO ofCentro Group of companies and 5 non executive directors.
Corporations Law Assignment Sample_2
2CORPORATIONS LAWDuties of directors breachedIn this case the directors of the Centro group of companies had been alleged to have breachedtheir duty of failing to notice the omission of the short terms debts amounting to billions ofdollars in the financial reports of the Centro Group. It can be stated that Centro Group had beenlisted on the Australian Securities Exchange as an investment organization. In this case it had been alleged by the ASIC that the directors had breached the provisions ofsections 180(1), 344(1)and 601FD(3) of the Corporations Act 2001 (Cth). The Corporations Act2001 (Cth) contains the rules and the provisions in relation to governance of companies inAustralia. Section 180(1) of the Corporations Act 2001 states that a director or an officer of acompany has the duty to exercise their powers and discharge their duties with a degree ofdiligence and care that any reasonable person would exercise if:Such reasonable was a director or officer of the companySuch reasonable person had the same responsibilities as the director in consideration andheld the same position as the director.It can be stated that this section imposes a civil penalty as provided in section 1317e theCorporations Act 2001 (Cth) on any director who contravenes the provisions of the section180(1) of the Corporations Act 2001 (Cth).In accordance with section 344(1) of the Corporations Act 2001(Cth), it can be stated that anydirector of a company, disclosing entity and registered scheme will contravene the provisions ofthis section if they fail to comply with the provisions of Part 2M.2 or Part 2M.3 or sections324DAA, 324DAB AND 324DAC. It can be stated that a person who contravenes theprovisions of section 344(1) will incur a civil liability as per the provisions of section 1317e.
Corporations Law Assignment Sample_3

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