Corporation Law(Australia)

Topic: Corporation Law(Australia) Order Description This is a research type Australian law assignment which requires extensive research and reading of several cases and therefore should only be attempted by the best of legal minds who have through knowledge of CORPORATIONS LAW. In this assignment you are required to write a formal letter guiding the directors on topics (example: 1.What options are available to the directors if they feel the company operations should be reviewed to see whether it can continue to operate or should cease? 2.What risks are the directors exposed to if they fail to take these options? ....) Detailed instructions along with slides, marking scheme and links to sources will be provided and some more instructions will be added on 31/10/15. To start the assignment read all slides, go through marking criteria, read the last parts of the question which are 5 marks each and in case of any doubt feel free to contact me anytime. Sources: LEGISLATION, Case Law, text books(, Australian corporate law, 4th edn, LexisNexis Butterworths) and website(austlii.edu.au) PS:This assignment require extensive knowledge of Corporations Act/Law, reading and a lot of ORIGINAL RESEARCH WORK with proper references. PPS: KINDLY USE 1.5 SPACING, Size 12 fonts, Font Type: TIMES NEW ROMAN. Question 2 (30 marks) (2000 words maximum) Assume you have been asked to give advice to some directors on the board of a company that has been experiencing years of financial difficulties. The business has been failing for some time and on a regular basis the board has been reviewing its strategies in order to stay afloat. On a number of occasions the solvency of the company has been questionable but on these events the company has managed to refinance its operations with the bank, its major creditor. The bank has always held security over the whole of the assets of the company and has wanted to try and allow the company to keep going if it can to give it the best opportunity to recover the debts if possible. The bank has recently come to the view that the company may be failing for other reasons. It has lost confidence in the chairperson of the board and suspects he may be embezzling funds. It has reported its suspicions to ASIC. You as a professional accountant are asked to write a formal letter to generally advise on the following issues based on the knowledge you learned in this course: (20 marks) (a) What options are available to the directors if they feel the company operations should be reviewed to see whether it can continue to operate or should cease? Practically how would this process or processes operate? (b) What risks are the directors exposed to if they fail to take these options? (c) What options may be available to the bank depending on the nature of their security? (d) What options may be available to ASIC if investigations prove the suspicions of the bank regarding the chairperson of the board? You should consider to use both primary and secondary sources, e.g. legislation, case law, text books, journal articles and websites(austlii.edu.au), to demonstrate your research skills in support of your advice in the letter. Wherever necessary, you should reference the sources in the letter. (5 marks) Letter format and communication skills. (5 marks)