Issues
A case has been described that a hockey player Simon has good skills in hockey, so he won price of $25,000 and now he needs international level training. In that case there is an accountant lecturer Philippa who wants to help him, so she gave her business card to Simon and told him to invest shares on High Flyers Lmtd. In the next day he lost the business card and invests the money in the company without asking Philippa. This was an urgent wrong decision taken by him
On the next day Simon and his friend peter went to a National park where a notice was given that construction is going on for improving the structures of the trees by developing its routes. Peter and Simon went for swimming and Peter gets hurt while he was swimming because a tree falls on him which construction process was going on (Mitchell, 2010).
On the next day Simon went to drink in a bar and while taking the bottle, he fell down and the bottle also fell down in his hand which injured his nerve system and in future it may affects his skills of playing hockey. The case is described below in an ILAC method.
There are three major issues which affected the life of Simon. Simon is financially and physically affected because of his own negligence.
Firstly, as he is a good hockey player who has better future skills, so it is necessary that for playing in international level games financially he is needed to be financially sound, so when Philippa got ready to support him economically he had to apply the idea. But the issue rose in that point when he lost the business card of Philippa who had disclosure with High Flyers Ltd Company but as Simon lost business card, so without calling her and taking her help he submitted the shares of amount to High Flyers Ltd Company which has high risk because trusting any company, it is necessary that the reputation and review of the company should be first checked then details about the shares should be understood then the money should be kept done for investment. So Simon was affected with vital problem because he loosed the money only because of is negligence. It has been heard by him that the High Flyers Ltd Company has liquidated money and the money invested by Simon came in high loss. In this case High Flyers Ltd Company has breached duty of care because it is the duty of the company to give security to the creditors which the bank has missed.
Laws
In the second case Simon and his friend Peter went to a national park but in that park a notice board was been given that construction is going on by cutting the trees in the park. The issue arise when they ignored the notice board and went for swimming. Suddenly Peter is injured because a four wheel vehicle was driven by a man Jacob who bumped a tree and as the tree had its roots in water so it fall on Peter which hurt him. Here Jacob is liable because of his tort of negligence (McClurg, 2010). Here as Peter is injured, so he can ask damages from Jacob because of his negligence which caused accident and injury to Peter.
In the third case problem occurred when Simon went to a pub for drinking alcohol. While taking out the alcohol bottle, it smashed on his hand and he experienced cut in his nerve. This issue not only physically affected him but as he is a hockey player, it negatively affected his future and spoiled his future skills. In the third case the negligence and self liability falls on Simon because only his carelessness gave him adverse result which affected his future and career.
As Simon has lost his money and shares in High Flyers Ltd Company, so if he asks for the legal guide then a legal advisor will guide him to claim his shares as a creditor of the company. According to Australian Corporation Act 2001, Part 1.5, the shareholders in the company are not liable for the debt of the company or liquidated condition of the company. According to section 197, 344, 588G, 588J, 588M, 1317H of Corporation Act 2001, it is the director’s responsibility for the debts of the company. It is company’s liability to give assurance about the security of the company but here the rules have been breached (Austlii.edu.au, 2017). In this case the director of the company has breached the duty of care by not maintaining the security of the company and that is the reason that the company has been liquidated.
As Simon is the shareholder and creditor of the company, so he can claim money from the company as a creditor. According to ASIC rules Simon can lose complaints against High Flyers Ltd Company to Australian government for getting back the money invested by him. It is a rule of every company that as a secured creditors right some assurance should be given to the investors of the company which has not be done by High Flyers Ltd Company. There are secured and unsecured creditors. Secured creditors have security funds kept in the company and they can claim against that fund (Hanks, 2011). The insecure creditors have security interest and it is risk for them to get back the money. According to Bankruptcy Act Simon has to wait for six months and after that he can get back his money because the company is already in a liquidated state but when the money will be received by him Simon will receive it with interest (Tabb, 2016). Simon can ask for monetary refund but after 6 months as the company is in liquidated state and as per Bankruptcy Act if the condition is proved to court then, according to Australian law, sic months time is given to the company to refund money to its creditors.
In the second case peter had met an accident because he and Simon went to National park where construction has taken place. While swimming, a four wheel was driven by Jacob who bugged a tree and it felled on Peter which injured him (Gorris, 2011). In this case according to Tort of negligence Peer can claim penalty against him for his treatment or he can sue him to the court. But equally negligence stands in Peter’s case also because as the park was under construction, so they should not have gone to the park for swimming but still Peter can claim damages in this case from Jacob for the negligence of tort and carelessness he died on hurting Peter which is the reason of his injury (McClurg, 2010).
In the third case Simon is himself liable because of the drink bottle fall on him so in that case he cannot make liable to anyone.
In the approach of application in the first case, Simon is a hockey player who has won hockey game and for his future financial stability, is necessary to develop his stability. In this case Philippa has given him economic guidance to invest share in High Flyers Ltd Company but while investing money Simon has not done any secured plan and invested money with shares in the company. If he would have invested money to the company in a secured way then it is needed that proper style is needed to be protected. Legally it is suggested that as per Corporation Act 2001 refund of money can be claim from the High Flyers Ltd Company and as per part 1.5 of the act after 6 months the money may be received from the company with high interest as duty of care is breached by the director of the company (Simpson, 2010).
In the second case as per ASIC rules Peter can claim against Jacob for blindly careless act. As per breach of tort of negligence, the person can charge back money. In case of Peter, he can ask for his own treatment so in that case he may claim damages for the treatment of his injury. Peter is partially negligible but he can claim for the careless deeds of Jacob for doing the accident and his injured state.
In the third case Simon is himself liable because for his carelessness and negligence he has went to a pub and while taking down the bottle of liquor he felled down and ten bottle also felled on him which is the case of his own negligence and in this case he cannot blame anyone nor any penalty can be asked by anyone from him.
Conclusion
This assignment is based on business enterprise law where description about corporation act, bankruptcy law, breach of duty of care, tort of negligence is described with the ILAC method (Gorris, 2011). All the case is related to life of Simon. In every case Simon and his friend Peter is partially responsible for their loss (Evans, 2016. In the first case Simon can claim damages from High Flyers Ltd Company because of breach of duty by the company of not keeping the money of the creditors securely. In the second case Peter can claim damages from Jacob for his treatment of the injury he got by the accident but in the third case Simon is himself liable, so he cannot claim damages from anyone.
References
Austlii.edu.au. (2017). CORPORATIONS LAW – Part 1.5 — Small business guide. [online] Available at: https://www.austlii.edu.au/au/legis/cth/repealed_act/cl184/sbg.html [Accessed 22 Apr. 2017].
Evans, N., & Watanabe, H. (Eds.). (2016). Insubordination (Vol. 115). John Benjamins Publishing Company.
Gorris, J. M., Hamermesh, L. A., & Strine, L. E. (2011). Delaware Corporate Law and the Model Business Corporation Act: A Study in Symbiosis. Law and Contemporary Problems, 74(1), 107-120.
Hanks, J. J. (2011). Legal Capital and the Model Business Corporation Act: An Essay for Bayless Manning. Law and contemporary problems, 74(1), 211-230.
McClurg, A. J. (2010). Armed and Dangerous: Tort Liability for the Negligent Storage of Firearms.
Mitchell, R., Gahan, P., Stewart, A., Cooney, S., & Marshall, S. (2010). The evolution of labour law in Australia: Measuring the change. Australian Journal of Labour Law, 23(2), 61-93.
Simpson, N., Gatenby, P. A., Wilson, A., Malik, S., Fulcher, D. A., Tangye, S. G., … & Goodnow, C. C. (2010). Expansion of circulating T cells resembling follicular helper T cells is a fixed phenotype that identifies a subset of severe systemic lupus erythematosus. Arthritis & Rheumatism, 62(1), 234-244.
Tabb, C. (2016). Law of bankruptcy. West Academic.
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