Legal Issues Faced by Gordon and Slater: A Business Law Analysis

Running head: BUSINESS LAW
Business Law
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Author note

1
BUSINESS LAW
Introduction
There are various shareholders of Gordon and Slater that might take part in a class action as they
got to know about the allegations that the company is having some financial problem. This class
action was taken against the high profile law firm. The rival firm is Maurice Blackburn that is
leading with $250 million class action that involves around more than 3000 people. A person
named Andrew Watson who is from Maurice Blackburn had commented that Gordon and Slater
had misrepresented their financial prospects towards the market. It developed a part in a
company of United Kingdom named Quindells in the year of April 2015. Gordon and Slater’s
value that shared plummeted and they acquired a loss of $1.02 billion in the month of August but
it was promised by the company to the shareholders that it would soon recover. Gordon and
Slater got failed to release their information about their financial prospects and performance to
the market. It was explained by Mr. Watson that last year in November their 30 per cent shares
fell in two business days and after some weeks these shares fell up to 51 percent. Gordon and
Slater stated that the media was aware of the reports that Maurice Blackburn intend to file a class
action. The firm stated that there was misconduct by Gordon and Slater that was found in a
separate investigation1.
ANSWER 1
ISSUE
1 SLATER-AND-GORDON (2018) <http://www.abc.net.au/news/2016-10-12/slater-and-gordon-lawfirm-faces-
class-action-from-shareholders/7925104.>

2
BUSINESS LAW
The first issues is to identify the legal problems which the firm Gordon and Slater may face in
relation to the facts discussed above
RULE
In the section 674 of Corporation Act 2001 (Cth), all such business organization need to liable to
the reveal the substantial evidences as conferring to the rules which are listed2. As mentioned in
the Ss. 1041A, any person must not carry out any such transactions in the business which might
affect the expansion of the false price in the trading processes of the monetary products.
In the s. 728(la) in CA 2001, it has been declared that a person must not suggest any of the
securities under the documents which are visible, as it has deceptive and misleading declarations.
Also in s. 728(2), a person who gives such a declaration regarding the matters of future without
the proper knowledge of the surroundings, leads towards giving a misleading declarations. As
mentioned in the Ss. 728(3), it is declared that any person is regarded to commit an offense or a
crime, where he is found to be violating the provisions mentioned in the Ss. 728(1) or if he gives
away some deceptive or misleading declarations, or is seen to disregard the newest situation
which are mentioned in the provided statements3.
2 Corporation Act 2001 (Cth) s 674
3 Corporation Act 2001 (Cth) s 728