Dubai Trimester 1 2020: BLAW1004 Corporate Law Media Report Analysis

This report analyzes a media report concerning Sandalwood Pty Ltd, a company that allegedly evaded over $7 million in taxes, breaching Australian tax laws. The report examines the legal issues arising from the case, including breaches of contract law, criminal law, and corporate law. It explores the legal duties of the company, the consequences of tax evasion, and the role of administrative law in addressing the company's illegal activities. The report also discusses the importance of the law in guiding conduct, the impact of media on public perception, and the ways in which the public can be informed about legal matters. The report references relevant legal concepts and provides answers to questions related to the case, including the implications of the company's actions and the role of various legal frameworks in the situation. The analysis draws on legal principles and relevant case law to assess the actions of the company and the authorities involved.

Corporate Law1
Student’s Name
Name of Class
Professor
Date

Corporate Law2
Question 1.
Corporations Law
Sandalwood Pty Ltd is a business e1ntity whose foundation has been established over the years,
and it has been administered and organized according to the corporations’ law. It was determined
that the company evaded tax since 2008 running to over $7 million breaching the Criminal Code
Act section 134 of the Australian tax evasion laws. When the company receives proceeds from
its dealing in trading activities, it is obligated to pay a 30% tax to the government of the land.
With that, Sandalwood Pty Ltd has breached its legal duty and has failed to act according to the
required good faith1. To address any further tax evasion penalties, the owner of the company
should pay the $7.5 million owed to the taxman.
Contract law
A contract is enforceable when the party involved entering into a formal and legally binding
agreement2. In this media report, a contract is breached regarding the business activities Wei
Hsiung “Francis” Chen should conduct in his Sandalwood Pty Ltd firm. As the owner of the
company, the business activities which included exports and imports undertaken in the company,
should have been done per the law. The company breached the contract when they started the
illegal trading of precious sandalwood products.
Question 2
Ensures reasonable predictability in daily life
1Kraakman, Reinier. The anatomy of corporate law: A comparative and functional approach.Oxford University
Press, 2017.
2 Breyer, Stephen G., Richard B. Stewart, Cass R. Sunstein, Adrian Vermeule, and Michael Herz. Administrative
law and regulatory policy: problems, text, and cases. Wolters Kluwer Law & Business, 2017.

Corporate Law3
Criminal law provides reasonable predictability in daily conduct as it ensures all the parties
follow the stipulations and the provisions within the contract. It confers the contracting parties
the right to enjoy the activities spelled out in the contract and receive the best services and high-
quality products during any transactional process3. The government should prosecute Mr. Wei
Hsiung “Francis” Chen for not sticking to the scope of activities his company was registered to
do.
Encouraging and discouraging certain conducts
Corporate law encourages a particular way of handling that ensures that all eligible citizens
within the boundaries of a country should pay tax4. The tax authority should sue Mr. Chen and
ensure that the amount of taxes owed is paid. Criminal law prohibits certain undertakings that are
illegal and deceitful. Mr. Chen should provide the authorities with the full details of his property
and business activities conducted in his company.
Grant rights and powers to individuals and groups of people
Administrative law gives capabilities to people and groups to stop business activities. The
Australian government was right to stop Sandalwood Pty Ltd.’s trading activities.
Impose obligation on individuals to meet their legal responsibility
Administrative law requires persons and organizations to fulfill their legal responsibility like
paying taxes and engaging in legal business dealings. The federal court was right in freezing the
accounts and properties of Mr. Chen over tax evasion.
Allows for the enforcement of recognized rights and duties
3 Barnett, Hilaire. Constitutional & administrative law. Routledge, 2017.
4 Stone, Richard, and James Devenney. The modern law of contract. Routledge, 2017.

Corporate Law4
Administrative law gives room for full implementation of rights and gives the federal court the
authority to sue Mr. Chen for his illegal business dealings and tax evasion.
Provides remedies in case of injustice
Consumer law gives solutions to prejudices as the federal court can sue Mr. Chen if full
information relating to his business activities is not sufficiently provided.
Question 3
They are the possible reasons that require an individual to be fully aware of the circumstances.
The primary role of the law in the land is to guide people to do what is right. The law enlightens
people of the rights they have5. In this media posting, it is right for the federal court to sue Mr.
Chen under both the criminal and the corporate law. If Mr. Chen was fully aware of the
requirements of the law, he might not have engaged in the illegal export of the Sandalwood
products as well as participate in tax evasion.
Question 4
The media highly infect the general perfection of the public regarding matters related to law, and
the way various law functions are administered by publishing and posting several newsfeeds and
state the relevant law touching on the published issue. There are several means in which the
public can be made aware of the code and its functionality6. It can be done both on traditional
media outlets such as the radio or modern media platforms such as social media which include
Facebook and blogs. Influence from top lawyers and judges can be shown by the use of a video
5 Barnett, Hilaire. Constitutional & administrative law. Routledge, 2017.
6 Breyer, Stephen G., Richard B. Stewart, Cass R. Sunstein, Adrian Vermeule, and Michael Herz. Administrative
law and regulatory policy: problems, text, and cases. Wolters Kluwer Law & Business, 2017.

Corporate Law5
that can be played in the learning institutions such as law schools and universities for a clear
understanding of the application of the law.
Public pressure profoundly impacts law legislators and court judges by demanding fairness when
dealing with the law. If members of the public feel repressed by a specific act, they collectively
stand up and air their views to the government for a fair hearing.

Corporate Law6
References
Blair, Margaret M., and Lynn A. Stout. "A team production theory of corporate law." In
Corporate Governance, pp. 169-250. Gower, 2017.
Breyer, Stephen G., Richard B. Stewart, Cass R. Sunstein, Adrian Vermeule, and Michael Herz.
Administrative law and regulatory policy: problems, text, and cases. Wolters Kluwer
Law & Business, 2017.
Barnett, Hilaire. Constitutional & administrative law. Routledge, 2017.
Kraakman, Reinier. The anatomy of corporate law: A comparative and functional approach.
Oxford University Press, 2017.
Rosenbloom, David H. Administrative law for public managers. Routledge, 2018.
Stone, Richard, and James Devenney. The modern law of contract. Routledge, 2017.