The office : held by Steven was managing directoR

The office : held by Steven was managing director, which raises a higher degree of care and diligence than a non-executive director or company secretary. – In terms of responsibilities: Steven was the person in charge of EW’s day to day actives including maintenance of its financial records, sole signatory of the accounts and was its controlling mind.  However, Steven did not meet that standard of care and diligence because, his conduct in relation to the subscription monies and the transfer to Beryl (Steven’s breach of ss.722 and 723).  Steven cannot rely on the business judgment defense (s. 180, because $300,000 was not used for business purpose and the amount was not reasonable.
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Issue: What remedies are available to EW? Law: s 1317E; s 1317G; s 1317H; s 206C & 206E; ss 184(1) and (2) Application:  Identify which sections of CA are civil penalty provisions and what this means in terms of remedies.  Explain what the ASIC may be seeking as remedies.  Civil penalty may apply to Steven under section 1317E, On application by the ASIC, Steven contravenes a civil penalty provision may be ordered to pay a pecuniary penalty of up to $200,000 under s1317G.  To pay compensation to the company for damage support by it under s1317H including an account of profit.   A managing director of Steven of a EW commits on offence of he is reckless or intentionally dishonest and tail to exercise his power and discharges his duties in good faith in the best interests of the EW or for a proper purpose ss184(1)and (2). Conclusion: Conclude the question by stating that Steven is in breach of particular sections of the CA and what the remedies are likely to be for ASIC. Steven is in breach of particular section of the CA section 181, 182, and 208 (Related Party Transitions). The court may order an account of profit made by EW in breach of his fiduciary duties.
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Question 2 Felix is the managing director of Energy Formula Pty Ltd (EF), a profitable company. EF’s core business involves buying from manufacturers and selling energy drinks and other drinks for medicinal purposes to retailers, including the popular INYAFACE sports drink. The current market for EF’s products is children between 12 and 18 years. Felix comes down with a bad flu and attends his local doctor. In the reception area of the doctor’s surgery, Felix starts up a conversation with Stacey. Felix discusses publicly available information about EF and his position with the company. Stacey says that she is a pharmacist. Stacey says to Felix that she has developed a drink called “Golden Oldie” which is a mix of soda water, Polish vodka and three pharmaceutical products that she did not wish to disclose at the time. Stacey claims that tests on her grandmother reveal that the drink has cured her granny’s Parkinson’s disease. Stacey asks Felix whether his company would be interested in marketing and selling Golden Oldie in conjunction with Stacey. Felix replies “Your product sounds fantastic and I’d be happy to help personally, but EF wouldn’t consider it because it only sells drinks to school kids. By the way, here’s

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