In the ACCC’s next round of audits we will be looking at franchises from the takeaway food and health and fitness industries, however our audits will not be restricted to these two sectors. During the last financial year, the ACCC received 740 complaints from people involved in franchising, with more than 100 of them related to misleading conduct and false representations about potential earnings (21 October 2013)
The Federal Court has made orders by consent against Koyo Australia Pty Ltd ordering it to pay penalties of $2 million following action by the ACCC. The Court found that in 2008 and 2009, Koyo Australia made and gave effect to two separate cartel arrangements (18 October 2013)
ASIC have started legal action against consumer credit provider GE Money, seeking financial penalties against the company for making false or misleading representations (17 October 2013)
The Newman Government is implementing significant reforms which will reduce red tape and the burden of liability on directors in Queensland, the Australian Institute of Company Directors said today (17 October 2013)
The former managing director of Wintech Group Limited, Kim Wong, has pleaded guilty 10 charges including stealing $1.057 million. Mr Wong pleaded guilty to the theft, falsifying Wintech prospectuses and providing false information to the Australian Securities Exchange (14 October 2013)
ASIC have published an annual overview of corporate insolvencies based on statutory reports lodged by external administrators for the 2012–13 financial year. (17 October 2013)
Consultation paper CP 217 Presentation of financial statements by stapled entities (CP 217) seeks feedback on proposals for presenting combined financial information covering these stapled entities. Submissions close 30 November 2013.(11 October 2013)
CONTRACTS – misleading and deceptive conduct – breach of express and implied terms – equitable compensation – construction of contract – indemnity provisions – member loans – breach of fiduciary duty should not be permitted because of a failure by Mr Li to articulate in sufficient time the basis for the claim for compensation – Fair Trading Act 1992 (ACT)
EQUITY – Fiduciaries – Director of family trust company arranged for the company to borrow money to make superannuation contributions to himself and family – Whether director breached fiduciary duties – Whether shareholders prospectively assented to transactions – Whether shareholders ratified transactions – Interests of beneficiaries of trust – Liability for knowing receipt – Whether sufficient knowledge – Liability for receipt of trust property as volunteer – Meaning of ‘volunteer’ – Whether superannuation fund provides valuable consideration in exchange for member or employer contributions – Cook v Benson  HCA 36; (2003) 214 CLR 370 applied – Whether plaintiff has unclean hands – Director breached fiduciary duty but no liability since recipient company had insufficient knowledge and was not a volunteer.
CORPORATIONS – Securities – Personal Property Securities Act 2009 – Amendment demand given seeking removal of registration from Personal Property Securities Register – Registrar refused to register a financing change statement amending registration – Whether reasonable grounds to suspect amendment sought not authorised – Collateral continues to secure debt owed by the applicant – Amendment sought not authorised – Decision under review affirmed.
Personal Property Securities Act 2009 (Cth), ss 178, 180, 181 and 191
Guarantee – Director guaranteed company’s credit application – Ceased to be a director in 2006 – Company failed to pay for goods supplied in 2012 – Plaintiff’s accounts manager aware in 2006 that defendant no longer a director of company – Whether plaintiff entitled to enforce guarantee against former director.
CORPORATIONS – Appeal – Managed investment scheme – Product disclosure statement – Disclosure of prescribed information by Responsible Entity – Meaning of ‘significant risk’ – Whether a risk ceases to be a ‘significant risk’ if it is capable of being managed – Whether risks that are being managed are required to be disclosed – Whether information contained in Annual Reports and ASX announcements required to be included in the product disclosure statement – Whether directors had knowledge of information about a ‘significant risk’ – Whether non-disclosures relied upon – Appeal dismissed – ss 674, 675, 1013C, 1013D, 1013E, 1013F, 1022B of the Corporations Act 2001 (Cth).
MISLEADING AND DECEPTIVE CONDUCT – claims under s 1041H(1) of the Corporations Act 2001 (Cth) – Considerations relevant to assessing whether representations misleading and deceptive – Whether representations relied upon – Appeal dismissed.