The Case of Australian Securities and Investment Commission Essay

The Case of Australian Securities and Investment Commission - strain ExampleThe issues in the cases about capital of Minnesota, Kim, and Karen in the texts involve the following scenarios Paul suggested that Properties One Pty Ltd (PO) should be the consultants for their caller-up SIL to investigate the most appropriate place for a new power plant in Toowoomba region. Whilst doing this Paul did not inform the other directors that his wife was a director and a major shareholder at PO. Paul also striked the Security One Pty Ltd (SO) on the basis that it had a nice website sort of of doing a thorough background check on the company to find out if it was a registered company, the trouble and even the track record of the company. The other issue is that Kim informed Judy the sister-in- justness about SIL proposal and she went ahead to bargain shares at PO. Karens issue is that she entered into a contract with Conveyers Australia Ltd after she was informed by the Chief monetary Offi cer that the prices of coal would go up by 25% because of the cold weather but she disregard as she only saw it as a short-term issue and used it to benefit herself. match to the Corporations Act (2001) of ASIC, directors are officers of a corporation and are supposed to oblige to the duties they are entitled to in section 9 CA. Section 182 states that a director must not improperly use their send to gain an advantage for themselves or someone else, or cause detriment to the corporation. Paul broke this law by suggesting the PO Company be used by SIL to promote the company of which his wife is a major shareholder and a director. Additionally, Paul breached section 180(1) which stated that directors must exercise their powers and discharge their duties with the distributor point of care and diligence that a reasonable person would in that position. Paul used his power to hire the security firm that was not registered and hired the firm based on the fact it had an attractive websi te, therefore, stellar(a) to theft in the company. Kim and Karen improperly used their powers in order to make a selfish gain.