Comprehensive Report: Legal Challenges for Australian Company Managers

This report delves into the legal challenges faced by company managers in Australia, examining various aspects of corporate law. It begins with an introduction to different types of companies in Australia and their registration processes. The report then presents several case studies, including a detailed analysis of a scenario involving a director's breach of fiduciary duty, drawing parallels with the case of Rodney Adler. It explores issues such as misleading information, financial losses, and the responsibilities of company directors. The report also addresses specific legal questions, including the different types of companies under Australian law, the concept of unclaimed money, and the role of the Director of Public Prosecutions. Furthermore, it provides information on company registration details, using examples like Albus Holdings Pty Ltd and Harry the Porter. The conclusion emphasizes the importance of adhering to legal obligations and seeking legal advice to navigate complex issues and foster business growth. The report references relevant legal sources and case law to support its analysis.

Legal issues for manager

Contents
Introduction:....................................................................................................................................3
Question 1:...................................................................................................................................3
Question 2:...................................................................................................................................3
Question 3:...................................................................................................................................4
Question 4:...................................................................................................................................4
Question 5:...................................................................................................................................4
Conclusion:......................................................................................................................................5
References........................................................................................................................................6
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Introduction:
The report on legal issues faced by company managers is a common phenomenon. Several cases
haves been discussed below o explain the issues in a critical way. The evaluation begins with
understanding different types of companies formed in Australia and how these are registered.
Besides this several cases were considered to explain various legal issues that affect negatively
on the business venture. There are five questions which are discussed in minute detail.
Answer to case study 1:
Advice to Ron on the particular case scenario:
Issues:
The given case study on Ginny and Hermione, the Brisbane based company discusses ways in
which a director Ginny duped the company and made them invest in an advertising agency for
reviving campaigns as per environmentalist’s opinion. Over a period of time the Brisbane based
company experienced complains from environmental agencies regarding the promotion
campaigns they showcase. According to the environmentalists the company shows impact of
burning coal on environment. These visuals of burning natural elements were not accepted by the
environmental agencies. Ginny took the initiative alone and did not discuss with the partner
before recommending and finalising a new advertising agency. She simply stated that change in
needed and in the board meeting she conveyed that she will be hiring a new agency by investing
$5 million.
Later however it was revealed that the agency, Ethical ads with whom the company has tied up
for improving visuals with new concepts belonged to her husband and sister-in law. Thus she
shared misleading information and this decision soon impacted negatively on the business.
Hermoine’s legal advisor identified that the company suffered huge loss and also was not in a
position to consider new steps since the company account does not have enough money. Hence
the business partner Ginny made profit and this impacted negatively on business.
Law
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CORPORATIONS ACT 2001 - SECT 184
Good faith, use of position and use of information--criminal offences
Application of the legal principles
When Ron advised for legal help it could be evaluated in relation to the case of company CEO
turned director Rodney Adler, the insurer who mislead the shareholders with false information
and made a profit for himself while ensured that the company experienced a severe loss during
the financial year (Turner & Trone, 2016).
Conclusion
As far as this case study is concerned here the management should quickly take legal help and
ensure that an investigation is conducted so that the guilty are punished like Adler and financial
loss that is suffered by the company could be reduced in a defined way.
Thus it is advised that the manager should supervise, investigate and take legal help to solve the
problem so that the company do not experience any loss in future.
Question 1:
A company under Australian Governmental policies could be limited, No liability or Proprietary
in the name. Every company as per Government rules has a unique legal entity controlled by
specific owners and directors. People who wish to work as a team and earn money may not
register as a company, but work for a common goal and earn money. Thus to earn money
through business, there is no need to form a company. A company is separate that is created by
following specific rules and regulations (Barker, 2007).
The No liability is also known as NL is a special type of company in Australia following
Corporations Act 2001 should have specific objects and ensure that it is only a mining company
and besides this, the company is also not entitled to adjust to the share price and manage alike
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issues. The company with suffix NL is restricted to only specific mining activities and this
approach may even lead to financial insecurities in the mining business. The specific letters thus
indicate No Liability and ensure that a mining company should adjust to the specific domain and
meet its expectations. No liability companies are completely different from other types of
companies and the shareholders of a no liability company are not allowed to pay calls on unpaid
share if any ("CORPORATIONS ACT 2001 - SECT 184Good faith, use of position and use of
information--criminal offences", 2017). This is a new attempt and is different from the
conventional company structure.
Question 2:
Unclaimed money is that money available in the bank which is generally from lost bank
accounts, life insurance policies, shares and investment. The money is lost only when an
individual or the owner of the fund shifts from the house and forget to update the recent details in
the bank website or with the respective financial institutions. The unclaimed money that is
accumulated by ASIC is finally transferred to the Commonwealth of Australia Consolidated
Revenue Fund. This amount is also made available to the rightful owner; however, he could
claim it anytime by disclosing identity ("Banking and money | australia.gov.au", 2017).
In order to claim money from the bank account on should contact the bank within 7years of the
amount maturity. If not contacted or claimed the account later becomes inactive. It is advised to
visit the Australian Securities and Investment Commission website for every detail about
unclaimed amount and understanding techniques of claiming the same.
Question 3:
After going through the respective case study on insurer Rodney Adler it has been studied that
Adler, the prominent personality in the insurance sector and was also the director of the
company, was responsible for the collapse of HHI Insurance and also jailed for circulating
misleading statement as a dishonest director. As far as the number of criminal charges is
concerned for which he plead guilty were 2 in number. As mentioned above, the first offence
was that for sharing misleading information about the company as a director and secondly
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circulating false information even after knowing that these would lead to the loss for the buyer
(Parkinson, 2013).
The Director of Public Prosecutions had its inception in 1983, under the Director of Public
Prosecutions Act. It began operations on 8th of March in 1984. This is an independent body also
known as an independent prosecuting agency. This is however not an investigative agency and
does not take severe actions. They generally offer advice and assist the Australian Federal Police
(AFP) and Australian Crime Commission (ACC) in their investigating process (accounts et al.,
2017).
Question 4:
After going through the respective website and searching for the company named, Albus
Holdings Pty Ltd, it has been underpinned that the ACN for this company is 114 457 402. It was
registered dated 26-05-2005 and is scheduled to be reviewed on 26-05-2018. The former name of
the company is Hogwarts Pty Ltd (ASIC, 2017).
Question 5:
The ABN for Harry the Porter is BN20986830 and the company is located at the state of
Queensland. Harry the Porter is a registered company under the Australian Securities and
Investment Commission. The company was registered on 18.11.2008. The company website
shares details in a proper way and informs about ways in which the company functions amidst
steep competition (ASIC, 2017).
From the above question and answers, it is evident that companies could be no liability, liability
or unlimited liability. There could be proprietary or public companies in Australia that are
expected to follow certain business norms and meet government’s instructions. Policies
developed to help to streamline business approaches in a significant way.
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Conclusion:
Legal issues are endless and complicated. Thus following legal obligations and taking help from
legal advisor helps in overcoming issues and grow in business in an honest way. Problems like
fraud, financial losses and planning a strategy to lead to financial loss or complete shut down as
in the case of the collapse of HHI Insurance are common if not handled properly.
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References
Accounts, C., accounts, F., shopping, O., cards, G., budgeting, C., & ideas, C. et al.
(2017). Claim money from bank accounts and bank dividends | ASIC's
MoneySmart. Moneysmart.gov.au. Retrieved 17 August 2017, from
https://www.moneysmart.gov.au/tools-and-resources/find-unclaimed-money/claim-money-
from-bank-accounts-and-bank-dividends
Are you owed money you don't know about?. (2017). ABC News. Retrieved 17 August 2017,
from http://www.abc.net.au/news/2017-04-26/unclaimed-money-in-australia:-more-than-$1-
billion-dormant/8472598
ASIC, N. (2017). Search Company and Other Registers. Connectonline.asic.gov.au. Retrieved
17 August 2017, from
https://connectonline.asic.gov.au/RegistrySearch/faces/landing/SearchRegisters.jspx?
_adf.ctrl-state=o18rxhiuv_4#
Banking and money | australia.gov.au. (2017). Australia.gov.au. Retrieved 17 August 2017,
from http://www.australia.gov.au/information-and-services/money-and-tax/banking-and-
money
Barker, D. (2007). Essential Australian law. Sydney, N.S.W.: Routledge/Cavendish.
CORPORATIONS ACT 2001 - SECT 184Good faith, use of position and use of information--
criminal offences. (2017). Austlii.edu.au. Retrieved 17 August 2017, from
http://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s184.html
Harvey, C. (2009). Cornerstones of Australian law. Prahran, Vic.: Tilde University Press.
HARVEY, C. (2017). FOUNDATIONS OF AUSTRALIAN LAW. [Place of publication not
identified]: TILDE UNIV PR.
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Parkinson, P. (2013). Tradition and change in Australian law. Pyrmont, N.S.W.: Thomson
Reuters (Professional) Australia.
Turner, C., & Trone, J. (2016). Australian Commercial Law. Sydney: Thomson Reuters
(Professional) Australia Pty Limited.
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