596b Case Study
1) Directors’ duties:
From the rule of S181, it regulates that what power directors have and what duties directors or other staffs need to response must be beneficial for the interests of the company. Besides, S182 clearly indicates that the staffs comprising directors and employees could not take advantages of their own position in corporation to make a gain for themselves and negatively provide corporation with detriment. According to S183, since all kinds of staffs including directors and employees could easily obtain company’s details such as internal financial reports, they are completely prohibited to make use of those information for their own interests and make the corporation has a loss. The rule of S184 finally give a definition that …show more content…
The rule of s 596AB illustrates that: first of all, if the director intend to harm the employee’s entitlements, this director is definitely not allowed to engage in a relevant transaction. In addition, if the director has a plan to reduce what entitlements the employees have or entitlements recovered by a company, this director is significantly prohibited to join in any relevant transaction.
5) The Similar Names Bill:
The Similar Names Bill is one of contents of the Corporations Amendments Bill 2012 which is introduced by the Federal Government. This rule regulates that directors have to personally take responsibility to the liabilities of a liquidated corporation if one “new” firm set up similar name or even totally same name as this company’s former incarnation.
6) Taxation law
In order to protect the commissioner of taxation, in a corporation’s winding up, there are two ways of collecting outstanding taxation liabilities which is going to compensate removing the commissioner’s statutory priority. These two new regimes of collecting outstanding taxation liability are indicated and clearly explained by the Income Tax Assessment Act 1936. One of regimes permits that the commissioner could make an assessment of unpaid PAYG (W) debts from winding up’s corporation. The other regime allow that the commissioner could take the recovery action according to the commissioner’s estimation and the commissioner has a power to commence the penalty regime for corporation’s directors
From the rule of S181, it regulates that what power directors have and what duties directors or other staffs need to response must be beneficial for the interests of the company. Besides, S182 clearly indicates that the staffs comprising directors and employees could not take advantages of their own position in corporation to make a gain for themselves and negatively provide corporation with detriment. According to S183, since all kinds of staffs including directors and employees could easily obtain company’s details such as internal financial reports, they are completely prohibited to make use of those information for their own interests and make the corporation has a loss. The rule of S184 finally give a definition that …show more content…
The rule of s 596AB illustrates that: first of all, if the director intend to harm the employee’s entitlements, this director is definitely not allowed to engage in a relevant transaction. In addition, if the director has a plan to reduce what entitlements the employees have or entitlements recovered by a company, this director is significantly prohibited to join in any relevant transaction.
5) The Similar Names Bill:
The Similar Names Bill is one of contents of the Corporations Amendments Bill 2012 which is introduced by the Federal Government. This rule regulates that directors have to personally take responsibility to the liabilities of a liquidated corporation if one “new” firm set up similar name or even totally same name as this company’s former incarnation.
6) Taxation law
In order to protect the commissioner of taxation, in a corporation’s winding up, there are two ways of collecting outstanding taxation liabilities which is going to compensate removing the commissioner’s statutory priority. These two new regimes of collecting outstanding taxation liability are indicated and clearly explained by the Income Tax Assessment Act 1936. One of regimes permits that the commissioner could make an assessment of unpaid PAYG (W) debts from winding up’s corporation. The other regime allow that the commissioner could take the recovery action according to the commissioner’s estimation and the commissioner has a power to commence the penalty regime for corporation’s directors