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Page 1 of 3 BA217 – COMPANY LAW – Trimester 2, 2017 CASE LAW ANALYSIS (Assessment Task item no. 2) Marks: 10% of final marks for the subject Words: 1,200 words (exclusive of APA referenced items)...

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BA217 – COMPANY LAW – Trimester 2, 2017
CASE LAW ANALYSIS
(Assessment Task item no. 2)
Marks: 10% of final marks for the subject
Words: 1,200 words (exclusive of APA referenced items)
Note: Students will be penalized with 3 points for every 200 words (or part of 200 words) they are under or over the word limit. Example: 1,000 words (no penalty); 1,400 words (no penalty); 980 words (1.5 point penalty); 1, XXXXXXXXXXpoint penalty).
Submission: online
Extensions: This assignment must be submitted by the due date, and through turn it in. If a student is experiencing personal difficulties, an application for an extension must be made to the lecturer, at least one day prior to submission, with an appropriate explanation such as a medical condition.
Late assignments: Late assignments will be penalized at the rate of 10% per day, that is, an assignment will be marked out of 90% for one (1) day late, 80% for two (2) days late, etc. and after five (5) working days, assignments will attract zero (0) marks.
Due Date: Week 8, by no later than 5.00pm (Australian Eastern Standard Time) Monday, 4th September 2017.
Marking Rubric: contained below.
Expectations:
? Students are to read text books, cases, search the internet for articles and commentary, and to follow the guidance of the lecturer in their research and reading.
? Compliance with APA Referencing Style Guidelines.
? Ensure your name and student number is clearly visible on your assignment.
? Keep a copy of your work for your records.
? Expression is important, and students should ensure that their essay displays appropriate clear expression and presentation.
? Students must reference materials appropriately (statute and case law), and ensure that any materials that are cited, quoted or referred to, have appropriate attribution (i.e.
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footnoted and with adequate indication of the use of any author’s work). We will do some work on this in class.
? Each presentation must be individual work and students must not copy another student’s work, or cut and paste work from books or the internet. Please be aware that plagiarism (the copying of someone else’s work) is not acceptable in any professional practice.
? Please ask your lecturer for assistance if you are unsure about an aspect of this assessment.
The Question:
ASIC v Adler [2002] NSWSC 171 was one of the most significant cases in recent Australian law. You are to present an essay/report that includes the following:
? What was the inappropriate behaviour displayed by Adler as an officer of HIH and other companies he managed and controlled?
? How did Adler’s actions contravene Australian law, in particular the Corporations Act? Please discuss the different areas of company law that were breached.
? What punishment did Adler suffer as a result of his conviction?
? What lessons does this case indicate for those who manage an Australian company?
? Make any interesting observations you believe are appropriate regarding this case, e.g. what have you learnt from your reading and research?
A 80-100% B 70-79% C 60-69% D 50-59%
Fulfilment of the objectives of the assessment
Good and clear statements of concepts communicated through clear and eloquent expression.
Material presented is relevant and linked to task; there is a clear indication of understanding of the issues.
Generally clear statements, indications of good reading resulting in well-presented work
Broadly completed but parts of presentation indicate poor understanding, or explanation
Reference to appropriate information (legislation, case law and relevant Rulings in particular)
Evidence of critical or thoughtful selection of appropriate statements and presentations Comprehensive and accurate. Conclusions supported by reference to appropriate published case, statutory and commentary.
Conclusions are supported by appropriate and well organised referencing. May be some minor omissions. Sources are appropriately cited.
Well researched with good use of material. Most information is appropriate, consistent and supportive of the conclusions drawn. Sources of information appropriately cited.
Generally accurate and appropriate; some incomplete, unsupported or inconsistent statements. Requires greater effort at substantiation and wider research.
Application of appropriate law &/or concepts dealt with in the topic or subject
Creative or reflective processing of relevant legal principles and close application to the facts; understanding of how and why they are used; critical and evaluative thinking.
Critical or evaluative thinking about how legal concepts/ principles are applied to the specific factual context; little inaccuracy or misunderstanding.
Relevant legal concepts, principles etc. applied to the facts in a generally appropriate and thoughtful way. No major misunderstandings; logical connections between ideas; no serious omissions.
Generally very limited application; some misunderstanding or quite superficial treatment.
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A 80-100% B 70-79% C 60-69% D 50-59%
Organisation and structure of the assessment submitted
Structure and sequence are used effectively to help integrate ideas or support logical argument. Soundly structured throughout.
Ideas are sequenced in a logically satisfying way; connections between different themes or sections are well made.
Sequence and structure are logical and easy to follow. Introductory and concluding sections used effectively.
Well enough structured to make sense; could be better organised and more tightly focused upon the topic. Instances of irrelevance or confusion.
Appropriate use of language, expression in explanation of the topic provided
Powerful, confident and precise use of language; mastery of style and tone. Near perfect referencing and acknowledgement of sources throughout the paper
Language use demonstrates precision and expressiveness as well as clarity. Evidence of appropriate citation of work
Language is generally sound and clear throughout. Some evidence of appropriate citation of work.
Clear enough to be understood; some confused or unclear expression. Spelling, punctuation & grammar generally satisfactory but likely to need attention. Poor referencing
Answered Same Day Dec 27, 2021

Solution

Robert answered on Dec 27 2021
117 Votes
Introduction:
This is one of the most significant cases detailing the responsibilities and the duties of Directors of
companies. This
ings to light how Directors of companies are held responsible for directors due
diligence and process and directors should act in good faith ensuring that shareholders interests are
guarded and what happens if this faith and
each of trust happens. Alder was the controller director
of Pacific Eagle Equity Pty Ltd (PEE)which holds in trust the working of Australian Equities Unit
Trust (AEUT).Alder in addition took up responsibility as the non executive chairman of Adler
Corporation Limited which was a majority shareholder of HIH Casualty and General Insurance Ltd
(HIHC) which had given an unsecured loan to the tune of dollars 10 million to the director’s
company. The loan was used to secure shares of HIHC which was total loss and the investment was
not discussed in the shareholder’s meeting as it was a substantial investment made. The duty of the
director was not performed in the true sense and hence it was held that Alder being the primary
Director of Alder Corporation had not exercised his duties judiciously and with the wa
anted
standard of care as was promulgated by the Australian Corporations Act of 2001.
What was the inappropriate behavior displayed by Adler as an officer of HIH and other
companies he managed and controlled?
The corporation’s act of 2001 clearly lays down the duties of directors and their effect on governance
of companies. Alder was not only the director of one company but held the post of non executive
director of two other companies. The transactions and unsecured loan payments were made with
conflict of interest in a way that could be called as
each of duties of a director functioning in one
company thereby trying to instigate another company through bad governance. Alder was also found
lacking in many areas of violating his duty as a Director
each of fiduciary duties as a director and
hence it was seen that he was found responsible for behaving in a manner not fit enough to be a

director .This was a case of unsuitable corporate governance and Alder was held responsible under
many sections of the Corporations...
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