Regulation of Companies in Australia (Essay Sample)

REGULATION OF COMPANIES IN AUSTRALIA
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Regulation of Companies in Australia
1. Frank is charged with an offence in relation to unsolicited credit cards or debit cards.
Frank has breached the Australian Securities and Investments Commission Act 2001, (ASIC Act); PART 2--Australian Securities And Investments Commission And Consumer Protection In Relation To Financial Services; Division 2--Unconscionable conduct and consumer protection in relation to financial; subdivision D – consumer protection; Section 12DL. The defendant bears the burden to provide the full criminal evidence in relation to the issues in the sub-section.
Any person who contravenes, aids, conspires, or induces this section and the person is not a corporate then he is liable to a fine not exceeding 2,000 penalty units; incase the person is a corporate then the fine should not exceed 10,000 penalty units. A greater amount of fine can be imposed if the person is convicted for the second similar offense.
2. Susan is an Auditor and was sent by ASIC a Notice to produce books about financial services. Susan has refused to produce them.
Susan as an auditor is breaching the Australian Securities and Investments Commission Act 2001, (ASIC Act); PART 3--Investigations And Information-Gathering; Division 3--Inspection of books and audit information-gathering powers; section 32A. it states that the ASIC may give a notice to businesses to produce books on their financial service; this needs to be a written notice to a specified person and indicating the place and time; in addition the details required such as supply or other financial services provided.
If Susan does not comply to this request then he is liable to punishment as stipulated in section 63 of the ASIC Act; which includes 100 penalty units or imprisonment for 2 years, or both.
3. Gary has started a new company and they haven’t kept any written financial records for the past 2 years.
According to the corporations act chapter 5 on external administration; part 5.2 receivers, and other controllers of property of corporation, section 431 it gives the controller the power to inspect books. Moreover Part 2M.2 on Financial Records, section 286 the business is under obligation to keep financial records (Tomasic, et al. 2002, p.38). It is the obligation of the company to keep correct and explainable financial records that indicate the position and performance and that are true and fair. Indeed, every financial record must be maintained seven years after the transaction and if there is an offence on this section it is of strict liability. The strict liability is clearly explained in section 6.1 of the criminal code and that is what Gary faces for his misconduct.
4. Jenny is an auditor and she has been charged with not retaining her audit working papers.
According to the Corporations Act 2001, PART 2M.3----Financial Reporting; Division 3--Audit and auditor's report; ...