Tutor Quora

Business Law: Forum Pty Ltd.

Academic Anxiety?

Get an original paper within hours and nail the task

156 experts online

Free Samples

Business Law: Forum Pty Ltd.

.cms-body-content table{width:100%!important;} #subhidecontent{ position: relative;
overflow-x: auto;
width: 100%;}

Business Law: Forum Pty Ltd.

0 Download9 Pages / 2,062 Words

 Discuss about the Business Law for Forum Pty Ltd.

The registration of Australian Investors Forum Pty Ltd was done on 18th May, 1999.
Lloyd –Cocks was appointed as a secretary of the Company and Mr. Luvara was appointed as the sole Director of the Company.
The business of the Company was carried on from an office in North Sydney.
The business of the Company was founded on the concept of share investment club and the business grew rapidly.
AIF promised that it would soon be listed in the Australian Stock Exchange and based on that promise it received an amount of $2.1 M from its clients for subscription of its shares. The monies thus received were used in the business of the Company and the shares were never issued to the subscribers. However, the company was never listed in the Stock Exchange.

The following issues have been considered by the Supreme Court of New South Wales:

Whether the “disclosure requirements” under section 727 (1) of the Corporations Act 2001 has been contravened by the defendants or not?
Whether the defendants are liable to be disqualified under the provisions of Section 206E or not?
Whether the directors or other officers of AIF, in their various business dealings, have breached the provisions under Section 180, 181 and 182 of the Corporation Act or not? (Harris, 2013)

Relevant Rules:
Section 727(1) of the Corporation Act, 2001
According to Section 727(1), an offer of securities must not be made by a person unless a proper disclosure of the offer is made to the ASIC through a disclosure document.
Section 206 E
The provision as laid down under Section 206E is as follows:
A person may be disqualified from managing corporations for such period as the Court deems fit on an application by ASIC if:
The person:
1. Has not been able to take reasonable steps while acting as an officer of a body corporate, which has contravened this Act at least twice.
2. Has himself contravened this Act at least twice while acting as an officer of a body corporate.
3. Has contravened Section 180(1) and 181 of this Act (in case the body corporate is a corporation)
4. The satisfaction of the Court is necessary for justifying the disqualification under clause (1)
5. The person’s conduct may be considered by the Court before any decision is made under this Section.
Section 180
Under Section 180, a Director or other officer of a Corporation has to act carefully and with diligence while discharging their duties and exercising their powers.
Section 181
Under the provision of Section 181, a Corporation’s director or other officer must act in good faith while discharging their duties and exercising their powers. The best interests of a Company and a proper purpose are also needed to be taken into consideration by such Director or officer.
Section 182
Under Section 182, directors or other officers or employees of a Corporation cannot use their position for causing detriment to the Company or gaining undue advantage.
Section 708(10)
Under 708(10), the disclosure of offer of securities is not required if:
1. Making of the offer has been done through a financial services licensee
2. The satisfaction of the licensee is necessary with regard to the previous experience of the persons to whom the offer is made and which allows them to look into:
3. The offer’s merit
4. The securities’ value
5. The involvement of risk in acceptance of the offer
6. Information needs of the offeree
7. Whether adequate information has been furnished by the offeror
8. A statement containing the reasons for satisfaction of the licensee relating to the aforesaid matters needs to be given  by the licensee
9. A written acknowledgement is needed to be signed by the offeree that a disclosure document has not been given (Kolivos & Kuperman,2012).
At the beginning of the trial Mr. Stack, appeared on behalf of ASIC and Lloyd Cocks and Messrs Anthony appeared for themselves and for Sacvere and Metrobank respectively. Since the defendants were not represented legally, there was the need for a certain flexibility degree in the trial. The defendants were alleged of certain contraventions that emerged before July 2001, that is before the commencement of the Corporations Act of 2001. However, several contraventions occurred after the commencement of the said legislation. The Corporations Act makes the inclusion of the provisions of the Corporations Law that the defendants have allegedly contravened. The parties to the dispute therefore made the proceeding on behalf of the provisions that are statutory, which are expressly provided in the Corporations Act.
ASIC made the allegation on the part of Lloyd Cock and Messrs Anthony that they have involved themselves in the commissions of the provisions of civil penalty and the provisions of no penalty of the said Act. The contraventions of both the provisions are relied upon in the said act as the ground for orders of disqualification under Section 206E of the Corporations Act. There was the submission by ASIC regarding the establishment of the standard of evidence to stand the fact of contravention of the Act. The submission that is made ASIC made the point that the disqualification is of a civil nature despite the contravention is a result of the breach of civil penalty provisions or the breach of the non-civil provisions of penalty.
There are several decisions that regard the fact that those decisions are to be considered as the standard of evidence where the order of disqualification is sought under Section 206E and Section 206C of the Corporations Act. It has been held by the Court that the standard of proof is required to find a declaration that would contain the contravention or the list of the procedures that would be in relation with the civil standard and not the standard that is criminal.     
In this case, ASIC alleged Cocks and Messrs Anthony to have committed infringement of both criminal and civil provisions of the Act. The contraventions relied on proving section 206E as a ground of disqualification or not. According to the ASIC, the standard of proof required for proving contravention of any part of the Act of an order of disqualification is a civil standard. However, the ground for proving contravention does not depend on the fact whether it was a civil stipulation or a non-civil stipulation (Griffiths, 2015). 
A number of case laws were taken into consideration in which standard of proof was required for proving disqualification under section 206E or section 206C of the Corporations Act (Malbon, 2013). In cases such as ASIC V. Alder, Briginshaw v Briginshaw, ASIC v Plymin and ASIC v Whitlam, the Court considered that the “standard of proof” required for finding breach of the Act is a civil standard and not a wrong standard though the attributes of the proceedings requires “prosecutorial fairness (Kolivos & Kuperman, 2012).” Section 130 (8) A of the Corporation Act (CA), deals with the application of Criminal Code. Section 13.2 (1) of the Criminal Code, “burden of proof” in a case must be released beyond considerable uncertainty (Richardson, 2012). However, in section 1332 of the Corporations Act, standard of proof shall be applicable in cases where a person has breached any stipulation of the Corporation Act or a default has been made in obeying the provision of this Act or any action that is regarded as unlawful as per the proviso of this Act. Alternatively, a person who has in any way been part of contravention directly or indirectly of this Act, the doctrine of standard of proof shall become applicable (Spagnolo, 2013).
At the beginning, Anthony and Cocks stated that the companies involved in the proceedings were proprietary companies or public companies excepting for Sage Global Fund Limited. They argued that their actions had been ratified by the shareholders of the relevant corporations so that no contraventions had been committed which could give rise to the imposition of civil penalty orders in favour of the companies concerned.).  However, contravention of the provisions of the CA were alleged by the ASIC and none of the shareholders never held Anthony or Cocks liable for breach of common law duties or fiduciary duties. ASIC sought orders for disqualification against Anthony and Cocks under section 206E and 1317H of the CA (Ha & McGregor, 2013).
In the case of Forge v. ASIC, the Court agreed to the fact that there is difference of view in Australia as to whether or not shareholders of an organization can ratify infringement by a director of a lawful duty. Though it may be proved that the shareholders of every organization may ratify an act that may give rise to infringement of the Act, nonetheless the judgment of the Forge case excludes any issues that the contravention was approved. The scenario of this case depicted the importance of breach of legislative duties of the directors. The breach of such duties is not only important to the shareholders of the corporation but also to other members of the corporation. The sentence provisions of the Corporations Act allow a company to be in the position to improve loss caused by the breach of duties of the directors for the benefit of the shareholders and creditors (Harris, 2013).
It was found that:
1. A disclosure statement has not been filed with ASIC as required under Section 727(1)
2. A financial Service licensee (AIF) has made the offer
3. A statement of reasons as required under Section 708(10)(c) was not given by AIF to the offerees
4. No acknowledgement was signed by the offeree as required under Section 708(10)(d)
Thus, Mr. Lloyd-Cocks, while acting as the Director of the company has failed to take reasonable steps for preventing the company from contravening the Corporation Act, 2001 and he himself was found to contravene this Act (Ha & McGregor, 2013). Thus, the present case falls under the ambit of Section 206E.
Moreover Mr. Lloyd-Cocks and Mr. Anthony, while acting as a Director and officer of AIF respectively, have been found to violate the provisions of Section 180, 181 and 182, in their business dealings with Medionics and Biotech. They have also violated the above mentioned provisions while issuing 210,000,000 shares in AIF on 16 May 2001 (Spagnolo, 2013).
The Court held Mr. Anthony liable for breach of section 206 (A) (1) of the Corporation Act between the time December 2000 until October 2001. Additionally, the Court held Cocks liable for breaching sections 180 (1), section 181 (1) and section 182 (2) of the Corporation Act. In total, 28 contraventions of the Act by Cocks were proved against him, the proceedings stood over for proof and submissions as to resulting respite (Spagnolo, 2013). Justice Palmer in this case noted that the payment of the management fee was not maintained and no records pertaining to the fee of the management was available. He stated that an ordinary man, when dealing with business transactions would insist on a contract in writing and an invoice for a detailed list of transactions (Richardson, 2012). He noted that the Board did not have detailed report of their meetings or of theor management fee. This case shows the importance of documenting board issues at the time of attending meetings and maintaining proper agreements when relying exemptions of arm’s length. Written records are helpful as they protect the interests of the person against any kind of allegation (Corones, 2012).
Asic v Australian Investors Forum Pty Ltd and Ors (No 2) [2005] NSWSC 267 (4 April 2005)
Corones, S. G. (2012, November). Liability of suppliers of extended warranties under the Australian consumer law. In Australian Consumer Law and Extended Warranties Halfday Seminar.
Griffiths, J. (2015). Application of the Australian consumer law to government commercial activities. Commercial Law Quarterly: The Journal of the Commercial Law Association of Australia, 29(3), 3.
Ha, H., & McGregor, S. L. (2013). Role of Consumer Associations in the Governance of E-commerce Consumer Protection. Journal of Internet Commerce, 12(1), 1-25.
Harris, B. (2013). Economic Cost Provisions in Fixed-Rate Home Loan Contracts and Breaches of Australian Consumer Law. J. Pol. & L., 6, 95.
Kolivos, E., & Kuperman, A. (2012). Consumer law: Web of lies-legal implications of astroturfing. Keeping good companies, 64(1), 38.
Malbon, J. (2013). Taking fake online consumer reviews seriously. Journal of Consumer Policy, 36(2), 139-157.
Richardson, M. (2012). Why policy matters: Google Inc v Australian Competition and Consumer Commission. Sydney L. Rev., 34, 587.
Spagnolo, L. (2013). Law Wars: Australian Contract Law Reform vs CISG vs CESL.
Sutton-Brady, C., Kamvounias, P., & Taylor, T. (2015). A model of supplier–retailer power asymmetry in the Australian retail industry. Industrial Marketing Management, 51, 122-130.

Free Membership to World’s Largest Sample Bank

To View this & another 50000+ free samples. Please put
your valid email id.


Yes, alert me for offers and important updates


Download Sample Now

Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.

UploadUnique Document

DocumentUnder Evaluation

Get Moneyinto Your Wallet

Total 9 pages


*The content must not be available online or in our existing Database to qualify as

Cite This Work
To export a reference to this article please select a referencing stye below:


My Assignment Help. (2017). Business Law: Forum Pty Ltd.. Retrieved from https://myassignmenthelp.com/free-samples/business-law-forum-pty-ltd.

“Business Law: Forum Pty Ltd..” My Assignment Help, 2017, https://myassignmenthelp.com/free-samples/business-law-forum-pty-ltd.

My Assignment Help (2017) Business Law: Forum Pty Ltd. [Online]. Available from: https://myassignmenthelp.com/free-samples/business-law-forum-pty-ltd[Accessed 19 December 2021].

My Assignment Help. ‘Business Law: Forum Pty Ltd.’ (My Assignment Help, 2017) accessed 19 December 2021.

My Assignment Help. Business Law: Forum Pty Ltd. [Internet]. My Assignment Help. 2017 [cited 19 December 2021]. Available from: https://myassignmenthelp.com/free-samples/business-law-forum-pty-ltd.

.close{position: absolute;right: 5px;z-index: 999;opacity: 1;color: #ff8b00;}


Thank you for your interest
The respective sample has been mail to your register email id


$20 Credited
successfully in your wallet.
* $5 to be used on order value more than $50. Valid for
only 1

Account created successfully!
We have sent login details on your registered email.



MyAssignmenthelp.com is the perfect solution to render quality solution for all sort of academic issues. We have hired professionals from different fields of study to provide assistance with different subjects. We successfully have provided different types of assignment solutions on 100+ subjects. We have hired industry experts to deliver nursing assignment, hr assignment and finance assignment help. To offer quality content with IT assignments, we have hired IT professionals to render programming language assignment help and IT assignment help for other types of IT assignments as well.

Latest Business Law Samples

div#loaddata .card img {max-width: 100%;

BU1112 Business Law
Download :
0 | Pages :

Course Code: BU1112
University: James Cook University

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Part A
Whether Stella is considered as an employee of PRX?
The main difference between employee and independent contractor is stated below:
Employee entered into contract of service, but contractor entered into contract for services.
Employer exercise control over the employee but no control was exercised by employer on contractor. It is considered as traditional test which was developed in Zuijs v Wirth Bros(Zuijs…
Australia South Lake Management health finance management  University of New South Wales 

BSBWHS605 Develop Implement And Maintain WHS Management Systems
Download :
0 | Pages :

Course Code: BSBWHS605
University: Swinburne University Of Technology

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Work Health and Safety Management System (WHSMS) is a collection of plans, tools, activities and processes. List 3 of these plans, tools, activities or processes and explain what they are,
The means, nitty gritty beneath, can be utilized whether the arranging procedure is straightforward or complex. They are:
Evaluating the current word related to wellbeing and security status including the ‘administration framework’ Lussier, R. N…
Australia Brisbane Management Work Health and Safety Management System (WHSMS University of Brisbane MBA 

BUSN331 Business Law
Download :
0 | Pages :

Course Code: BUSN331
University: Centennial College

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Canada

In Alberta, the Residential Tenancies Act applies to all the people in this jurisdiction, who rent their space out (Alberta Queen’s Printer, 2016). Through this act, the rights and responsibilities of the landlords and tenants are brought forward (Landlord and Tenant, 2015).
Question 1
Before a tenant can move in the rented accommodation, the tenant and the landlord have to reach an agreement, with regards to the…
Australia Edmonton Humanities Management University of New South Wales Masters in Business Administration 

LA1040 Contract Law
Download :
0 | Pages :

Course Code: LA1040
University: University Of London

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: United Kingdom

A contract is an agreement between the parties which is enforceable legally in the courts. There are several provisions of law which governs how the terms related to the contract would operate. A contract consists of a set of provisions which are known as contractual terms. The weightage of such terms are not equal as one term may have a more significant consequence as compared to the other in relation to their brea…
United Kingdom London Economics Management University of London 

TLAW202 Corporations Law
Download :
0 | Pages :

Course Code: TLAW202
University: Top Education Institute

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

If any person wants to carry out his business in the form of a company, then, it is necessary that the registration or incorporation requirements of such country must be met. In Australia, the Corporation Act 2001 and the guidelines laid down by ASIC provides with the steps that must be accomplish in order to establish a corporate entity.  (Malbon & Bishop, 2006).
A company is of great significance as it is treated as a …


Need an essay written specifically to meet your requirements?

Choose skilled experts on your subject and get an original paper within your deadline

156 experts online

Your time is important. Let us write you an essay from scratch

Tips and Tricks from our Blog

11174 Introduction To Management

Free Samples 11174 Introduction To Management .cms-body-content table{width:100%!important;} #subhidecontent{ position: relative; overflow-x: auto; width: 100%;} 11174 Introduction

Read More »