Corporate Law Issues All over the World - Essay Example

CORPORATE LAW a) Australian Securities and Investments Commission publishes two gazettes ly Commonwealth of Australia ASIC Gazette and BusinessGazette. b) ASIC Gazette and Business Gazette contain different types of information. ASIC Gazette should be consulted for information on instruments and any changes in the instruments, changes in the type of the company, reinstatements, withdrawal or deregistration of company and unclaimed dues. The Business Gazette on the other hand contains information on private company announcements by different firms made under the Corporations Act 2001. c) A company registration can be done through various agents that have the required software approved by ASIC. This software is directly connected to ASIC. However if a person doesn't wish to engage in this and instead wishes to contact ASIC directly, they will need to do the following: Choose a name for the company. Once the same is selected, it needs to be reserved with ASIC. This is done by completing 'Form 410' that is meant for this purpose. Once the form is completed, ASIC would reserve the name for a period of two months. Names are not indefinitely reserved and extension can be requested. The fee for reserving a name is $40. The extension would cost another $40. Reserving a name is important because once you have decided on a name and you do not want anyone to use it and there is still some time before you can register the firm then ASIC protects your name for the period. d) Search for Rodney Adler revealed: His full name is Rodney Stephen Adler His address was not available Mr. Adler's banning order commenced on 9th September 2002 and will end on the same day in 2022 No further comments were made. Search for Mr. John Elliot revealed His full name is John Elliot His Address was given as '1 Towers Road, Toorak, VIC, 3142'. His banning order was released on 5th July 2004 and will end 5th June 2008. No further comments available. e) The Banned and Disqualified Registers contains information about persons who have been disallowed by the government to engage in the management of a company. Some of them are banned from participating in the financial services industry completely. The registers would contain information such as person's full name, his address, the date when banning order was passed and the date when it would end. These registers are divided into four categories namely: Persons barred from management of corporations Banned securities representatives Banned futures representatives Other banned or disqualified persons Disqualified from management of corporation Register: This register contains information only about persons who have been disqualified from managing a corporation under the Corporations Act. The notices about such persons are sent to the ASIC and their names are then added to the register. However it must be carefully noted that there are other persons who are not allowed to manage a corporate because they are bankrupt or have a criminal record. The notices may not reach ASIC in these cases and thus their names do not appear on the list. Banned Securities Representatives Register This registers contains names of pre-AFS licensees. The people who hold these licenses act as authorized representatives of licensed advisers. In the case the adviser or a representative is prohibited by the ASIC for giving advice, their names will appear in this register. These people are also part of the Banned and Disqualified register but their names may not be duplicated there. Banned Futures Representatives Register: The people on this register are those who have the pre-AFS license but are not allowed to practice as advisors in future. AFS Banned/Disqualified Persons Register Any person who works in the financial services sectors needs to have AFS license or work as a representative of someone who has this license. These people are authorized dealers and their names can be found on the list of authorized advisors. However under FSR legislation, which commenced on 11 March 2002, there are some people whose licenses have been revoked and are thus no longer eligible for work in the financial services sector. The names of these people are contained in this register. These registers do not provide adequate information while they do try to list all the names with which we must not engage in business activities. The information about their banning order is important and available but there is no additional information as to why the person was banned. This can create problems for those who might have unknowingly engaged in partnership with them. It would have been much better if there were additional information available for all these persons. Question 2: (a) ASX Listing Rules refer to the standards developed by ASX to control and regulate behavior of listed companies. These rules guide the listed entities regarding expected behavior and ethical standards. These rules influence the corporate law by controlling such important things as entry into official lists, quotation of securities, withdrawal of securities and removal of companies. (b) ASX rules are based on principles governed and protected by the Corporations Act. These rules are binding on all listed entities. Their contributions are thus highly influential since they provide the guidelines for operating and running a corporation in Australia. Question 3: a. The Takeovers Panel has wide powers including declaring a takeover unacceptable. However it cannot make decision like a court can and cannot nullify a takeover. It can however present the appeal before the Minister. This is a speedier way of getting your takeover appeal heard by the higher-ups. b. The two parties involved were Patrick Corporation Limited and Toll Holdings Limited. The sections applied on the case were Corporations Act 2001 (Cth) sections 602(c), 623, 624, 650F, 657A, 657D, 657E. Panel decided to reject part of the application made by Patrick Corporation. This part dealt with the institutional acceptance facility that had been established by Toll Holdings. On 8 April 2006, Toll Holdings decided to withdraw part of its application. This part dealt with declaration of unacceptable circumstances in connection with a statement made by Patrick Corporation Limited. Question 4: If a person refuses to appear for the hearing, it would be a violation of ASIC Act 2001, Section 57. If a person presents false or misleading evidence, he would be violating Section 199 of ASIC Act 2001. Cash Cows Ltd is violating Section 145 of Corporations Act 2001. Reference Australian Securities and Investments Commission: Retrieved online from http://www.asic.gov.au/asic/asic.nsf http://www.asx.com.au/supervision/rules_guidance/listing_rules.htm http://www.takeovers.gov.au Read More