Simon was awarded S25,000 as a prize at an awards night.
In his acceptance speech, he thanked his donor and stated that he would use the money to help him improve his hockey skills.
Philippa, an accounting lecturer, approached Simon at the function and offered to help.
Simon was open to hearing what Philippa had said, even though it was obvious that Philippa was a former alcoholic.
Philippa had recently received disclosure documents and recommended that Simon invest his entire money in shares at High Flyers Ltd.
Simon voiced concerns about his knowledge of shares. However, he was aware that money left in a bank account wouldn’t provide enough money to support him for the next 2 years (food, accommodation, etc).
Philippa assured Simon that she was an authority and that he could depend on her.
Philippa was right and Simon took her advice. He spent the money to purchase shares in High Flyers Ltd. without calling Philippa as he had misplaced his business card.
Simon and his friend felt financially secure.
Peter set out to do a bushwalk at Springfield National Park.
The Park Rangers recently had rerouted a stream and posted a notice that stated they were carrying out an environmental study about the effects on trees.
Simon and Peter went to the Park because it was windy.
Jacob drove a fourwheel-drive vehicle that was taking them to a popular swimming hole.
A tree with roots in water was bumped.
Peter was severely injured when the tree fell on him.
Simon felt extremely fortunate so decided to throw a little party.
He went to the liquor counter to buy alcohol.
The shelves with the most bottles were at the top.
He had stretch to reach his first and second bottles. However, he probably overexerted himself to reach the last bottle.
He lost his footing as he reached for the third shelf and fell.
His hand was cut by the third bottle as it smashed into his hand.
Unfortunately, the injury to his hand means he won’t be able play groat hockey.
Simon was returning home from hospital following treatment for his hand. Simon heard that High Flyers Ltd has been liquidated.
He has now lost all of his money.
Simon and Peter are advised to fully explore their options for pursuing negligence claims.
Answer to Question: 200909 Enterprise Law
Simon, a professional hockey player, won $25,000 and is now in need of international level training.
Philippa, an accountant lecturer wants to help Simon. Philippa gave Simon her company card and suggested that he invest in shares on High Flyers Lmtd.
Philippa didn’t ask him to help him, so he took the business card with him and invested the money.
This was a terrible decision.
Simon and Peter, his friend, went to a Nationalpark where a notice was placed that construction was ongoing for improving the structure of trees and developing their routes.
Peter and Simon went swimming. Peter is hurt by falling from a tree which was being constructed (Mitchell (2010)).
Simon went out to drink the next morning and fell while trying to take the bottle. His nerve system was also injured and the bottle fell into Simon’s hand.
In an ILAC manner, the case is described below.
Simon’s entire life has been affected by these three issues.
Simon is physically and financially affected by his own negligence.
Philippa offered to support him economically, and he accepted.
Philippa, his business card was lost by Simon. Simon then submitted the shares to High Flyers Ltd Company. High Flyers Ltd Company is high-risk as any company you trust should first be checked.
Simon was now in serious trouble because he had lost the money through his negligence.
Simon was informed by High Flyers Ltd Company of liquidation of money. This meant that Simon’s money had a very high loss.
High Flyers Ltd Company is alleged to have breached its duty of diligence in this instance. The bank missed the obligation of providing security to the creditors.
Simon and Peter were with Peter’s friend when they went to a National Park. There was a noticeboard that stated that the construction of cutting trees in the park was ongoing.
They ignored the warning board and went swimming.
Peter is now injured by a four wheeler driven by Jacob. Jacob bumped a tree, and the tree’s roots had become waterlogged. Peter suffered injuries.
Jacob is liable due to his tort (McClurg 2010).
Jacob can award Peter damages for the injury he caused Peter.
Simon was going to a pub to get some alcohol.
The alcohol bottle smashed into Simon’s hand, causing a severe nerve injury.
This problem not only negatively affected him physically, but also because he was a hockey player, it impacted his future and ruined his future abilities.
Simon is at fault for self and negligence in the third instance. Simon’s carelessness caused him to suffer a bad outcome which impacted his career, and his future.
Simon has already lost his money and shares of High Flyers Ltd Company. He can ask for a legal guide to help him to claim the shares as a debtor of the company.
Australian Corporation Act 2001 (Part 1.5) states that the shareholders of the company do not have to pay for any company debts.
It is the responsibility of the director to pay the company’s debts according to Corporation Act 2001 section 197.
It is the duty of the company to ensure the security of the company. However, here the rules have not been followed (Austlii.edu.au 2017.
In this case, the director of company has violated his duty of care by failing to secure the company. The company has been liquidated.
Simon is the shareholder as well as the creditor of the business, and can therefore claim money from it as a creditor.
ASIC rules provide that Simon may file a complaint against High Flyers Ltd Company to the Australian government in order to get his money back.
High Flyers Ltd Company does not provide any assurance that he is a secured creditor.
There are both secured creditors and unsecured creditors.
Secure creditors have company-owned security funds that they can claim against (Hanks 2011).
The insecure creditors can claim against the company’s security funds and they are at risk of losing their money.
Bankruptcy Act requires Simon to wait six months before he is able to receive his money. Although the company has been liquidated, Simon will still receive the money with interest once it has been received.
Simon can ask the company for a monetary return, but it will take six months before the company can pay him back. According to Bankruptcy Act, if the company is found to be in liquidation, the company has to give the company 6 months to reimburse its creditors.
Simon and Peter were going to National Park where construction was taking place in the second case.
Jacob, driving a four wheeler, was swimming when he snuck into a tree. Peter was injured by the fall (Gorris 2011).
Peer can seek damages from Jacob for the treatment he received or he could sue him at court under Tort.
Peter’s case still has negligence because Peter and Jacob were in construction. Peter should not have gone to the park to swim, but Peter could claim damages from Jacob for his negligence of tort or carelessness in which he injured Peter (McClurg 2010, McClurg).
Simon is responsible for the drink container that fell on his head in the third case.
Simon is a professional hockey player. He is required to build his financial stability.
Philippa has given Simon economic guidance to help him invest in High Flyers Ltd Company. Simon hasn’t done any secured planning and instead has invested with shares.
If he had made a secured investment to the company, it is necessary that he is protected in the right way.
Legally, it is possible to claim a refund under the Corporation Act 2001 from High Flyers Ltd Company. As per section 1.5 of the act, money may be taken from the company after 6 months if the director breaches his duty of care (Simpson and 2010).
Peter can file a claim against Jacob in the second situation, as per ASIC rules.
In the case of a breach of tort or negligence, the person is entitled to recover his money.
Peter may request his treatment. In that case, he may be entitled to compensation for the treatment of his injuries.
Peter’s damages are partially negligible. However, he can sue Jacob for his careless actions in the accident and the injuries.
Simon is also liable for the third case. Simon was drunk and distracted while going to a pub. Ten bottles of liquor fell on him as he tried to take down the bottles.
This assignment is based business enterprise law. Descriptions about bankruptcy law, corporation law, breach of duty to care, and tort-of-negligence are all described with the ILAC Method (Gorris 2011).
Simon is at the center of every case.
Simon and Peter were both partly responsible for their loss in all cases (Evans 2016.
Simon can file a claim against High Flyers Ltd Company to recover damages for breaching its duty of not keeping the money secure.
Jacob can provide Peter with damages for the injuries he sustained as a result of the accident. Simon cannot be held responsible in the third instance.
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