Legal Rights and Actions under Corporation Act 2001 for ACE Ltd and Its Members

This report covers a case study on legal rights and actions available under Corporation Act 2001 for ACE Ltd and its members. It includes duties of directors, actions available for breach of duties, and legal actions available for members. The report also discusses the legal capacity of the company and the powers given to it under section 124 of the act. It concludes with advice for Joe, a member of ACE Ltd, on legal actions available to him in case of any breach of duty by the directors.

Applied Company
Law

TABLE OF CONTENT
INTRODUCTION...............................................................................................................................3
MAIN BODY.......................................................................................................................................3
Question 1A. Advise ACE Ltd of its legal rights and any action available under general law in
Australia law.....................................................................................................................................3
Question 1B. Joe is a member of ACE Ltd. advice about any legal action available to him in this
case....................................................................................................................................................5
CONCLUSION....................................................................................................................................5
REFERENCES....................................................................................................................................5

INTRODUCTION
Australia corporation Law is generally being incorporated with the UK company law.
This helps out to provide a proper structure in a legal manner which promotes the statue for
the company. There is being provided the single national regulation authorities and the
Australian securities and investment commission ASIC through which all the investment and
the general companies working at function are being managed (Abbas & et. al., (2018)). This
report will cover a case study through which the legal rights with actions are being explain
which are being given to the company and the directors under corporation act 2001 and
further it will also provide legal action available for the board members.
MAIN BODY
Question 1A. Advise ACE Ltd of its legal rights and any action available under general law
in Australia law
Corporation act 2001 is an important Australia law which promotes the principal
legislation in order to regulate all the functions of business entities and companies in
Australia. This promotes and manage all the matters regarding to the operations and the
formations of different kinds of companies and their constitutions of different adoption and
working procedures. It also involves the duties which are being required for the officers with
their fundraising and their takeover methods. Corporation act 2001 also imply to provide
protection for general liabilities of the board members and other cooperative actions and a
penalty for the breach which is being made in the company (Abdul-Baki, (2019)). It is being
analysed that the different standards, legislation and courts are being amended under it.
In corporation act 2001 there are some legal rights and powers are being given to the
company under section 124 through which the part company can manage effectiveness of
their working as in context to ACE Limited there are some important rights which are being
provided to them according to this act which they are like:
 The company have the power to cancel and also to generate different shares which are
being required for the corporation and they’re working.
The company can issue debentures and can also manage all the redeemable issuance
of debenture in case of contingency or any end of period time.
 Company can also grant the options for The and issued shares which are being made
and can also distribute any of the property among their members in any of the way.

The security interest can also be granted by them and they can also circulate the
interest over cos property.
 The company can do any of the actions which are being authorised by law including
any of the foreign companies for the systematic working of their firm.
As according to section 124(2) Company have the legal capacity that they can do
anything which will not affect the company’s interest.
Some of the major duties of directors in corporation act section 180 as Julia being the
director of ACE Ltd. have certain duties like:
 The directors of the right that they can make any kind of judgement in good faith
for the purpose of company.
 Directors will not have any personal interest in any kind of subject matter of the
company.
 Directors will have to inform about the subject matter regarding to their
judgement for the appropriate decision that is being taken for the company.
 They will have to rationally believe regarding for the best interest for
Corporations.
Actions available in Corporation Act 2001 for the ACE Ltd
Some of the major actions that are being available in the corporation act for
the breach of their duties as a civil obligation which considers civil penalties in which
court will give that the company office holders in case of any breach will have to give
the pecuniary and financial penalty and they can also order the director in order to
compensate for the company. The court have also the right to disqualify any of the
person from managing the working functions of corporation for a general period of
time. ASIC can regulate the responsibilities bye bringing all the issues in the court for
the action against the officers and the directors of the company (Campbell, &
Cartwright, (2017)). Under section 184 of corporation act 2001 all the criminal
offence by the directors or any of the officer in order to gain any dishonest means for
the failure for the exercising of powers and discharge meant of duties will be
considered in it. There is being also given that any person who makes a company to
be insolvent contravenes under section 588G that will cover under the criminal
liability of insolvent trading.

Question 1B. Joe is a member of ACE Ltd. advice about any legal action available to him in
this case.
Legal actions available for members in company
Joe as being the member of ACE Ltd have certain rights through which they
can manage their working in a proper manner and can also implement and work for
the security of corporation. As it is important that all the directors while taking the
decision for the company should discuss it with the board of members in order to
work for the benefit of the company and their agreements. There is being seen that all
the members as they were also having the shares in the companies are likely to have a
right to get a proper disclosure regarding the investment and other areas. In case of
non-disclosure of any of the important information they can apply section 184 of
corporation act where in case if any of the director dishonestly breach then they can
take mere action against them. As in case Foss v. Harbottle Court held that individual
shareholders have the rights against the director in case of any breach which is being
made by them regarding the duties of the company and any wrong against the
company (Zulkarnaen, (2018)). Thus, in this scenario although Julia has later
disclosed her interest in BT Associates Pty. Ltd but she should have revealed all the
information earlier to the members. Saudi members have the right to take action
against her for the breach of duty to take care and taking any action without any
information.
CONCLUSION
From this above report it is concluded that corporation act 2001 helps out to provide
protection to all the corporation regarding their functions and their general working
procedures. It also promotes and provides the directors Inc under the company to work
according to the act. There are some important legal duties of directors under it which are like
to act in good faith and also to act without any personal benefit. Further it is also analysed
that in case of any breach made by the directors there are certain actions which are being
available for the members of the company.
REFERENCES
Abbas, S. Z., & et. al., (2018). Energy management in South Asia. Energy strategy
reviews, 21, 25-34.
Abdul-Baki, Z. (2019). The role of accounting in conflicts resolution: The case of PwC’s
forensic audit of the Nigerian National Petroleum Corporation. Managerial Auditing
Journal.

Campbell, A., & Cartwright, P. (2017). Banks in Crisis: The Legal Response. Routledge.
Zulkarnaen, A. H. (2018). THE IMPLEMENTATION OF CRIMINAL SANCTION IN
CORPORATION OF THE LABOUR LAW PERSPECTIVE (CASE STUDY ON
CORPORATIONS IN CIANJUR DISTRICT, INDONESIA). Journal of Legal,
Ethical and Regulatory Issues, 21(2), 1-13.