As per the case study, it is the case of breach of duty of the director. As per the Corporation Act 2001, the directors of the company breach the sec- 180(1) of duties of care and diligence towards the company. As per the sec-180 of The Corporation Act 2001 in Australia, define the duties of loyalty and duty of care to the company, other directors or officers and the employees. The sec 198A defines the powers of directors in the company (Hanrahan & Bednall 2015). As per the case study, the directors of Storm Financial, Emmanuel and Julie Cassimatis have breached their duties as directors. The court found that Storm Financial provided inappropriate advice to some investors of the company.
As per the Corporation Act 2001, sec-180 defines the duties of loyalty and duty of care to the company, other directors or officers and the employees. They have duties to trust toward other directors and employees. They will do their duty with loyalty and never deliver any false conducts to the employees and the other directors. Sec- 198A defines the powers of the directors, which they will never misuse for their own benefits (Hedges et al. 2017).
As per the case study, it is duty of the Cassimatises to look after their investors because they are the important part of the company. When Cassimatises advises the investors of Strom, they have failed to do all things necessary to ensure that the financial sesrvices covered by its license was provided efficiently, honestly and fairly. The ASIC make allegation against the Cassimatises because they were responsible for the unusual decisions in relation with the provision of financial services to Storm's clients, which have control over its systems and processes. Therefore, they had caused Storm to negligent its obligations under the Corporations Act and did not found their powers as directors of Storm with the degree of care and diligence, which would have exercised in that situation. As the director of the company they have breach the duties toward their clients (Hedges et al. 2017). The investors are falsely represented their facts. Now, the Federal Court has also found that Storm Financial, Emmanuel and Julie Cassimatis not only breach their duties but also give in proper information to the investors. Now, the investor can claim their damages from the directors of the company. As the directors, they are failed to work as per their duty of care towards the employee and the investors also (Smith 2015).
As per the case study, the company directors can defense himself if they have proved that they provide true statements to the investors and did not breach their duty as directors of the company.
As per the case study the directors have failed to do perform as per their rights as a directors and breach their duties towards the investors.
As per the case study, the issue is whether the gold mining public company will get their license for their company under the Queensland Environmental Protection legislation.
As per the case study, the gold mining public company has three directors who are very determined to make a start with exploration activities. The gold mining company can apply for a license under the Environmental Protection Act 1994 (EP Act) through the environmental authority (Glasson, Therivel & Chadwick 2013).
The act protected the Queensland’s environment at the time of developing the balance and quality of life of people and maintains the balance the ecological process. Under the New EA, applications the mining company can register for the license through the Department of Natural Resources and Mines’s MyMinesOnline service ("Environmental legislation (Department of Environment and Heritage Protection)", 2017).
As per the Queensland Environmental Protection legislation, the new gold mining company can obtain their license for opening the business. The directors of the company are very determined in their duties toward the company. However without obtain the license the mine project can be affected. As per the new EA, applications the mining company can register for the license through the Department of Natural Resources and Mines’s MyMinesOnline service ("Environmental legislation (Department of Environment and Heritage Protection)", 2017). The company must lease the mining projects. First, they need the approval under the Environmental Protection Act 1994 for a watercourse diversion, which is the important part before applied the EA application. For the public notification of the proposal application which must registered by a Professional Engineer of Queensland (Glasson, Therivel & Chadwick 2013). The administrative authority will approve the eligibility criteria and standard conditions for an environmentally relevant activity (ERA) under the Environmental Protection Act 1994. However, after 31 March 2013 the Environmental Protection Act 1994 have issued new application for the mining projects (Richert, Rogers & Burton 2015).
Before applying for the registration under Environmental Protection Act 1994, the company must follow some instructions. They must have a risk assessment before started the company. It is the duty of the company that they will provide proper information about the uses of the chemicals of hydraulic to the Department of Natural Resources. At the time of process the uses of BTEX (benzene, toluene, ethyl-benzene and xylene) in stimulation fluids (also hydraulic fraccing fluids) must use as per the proportioned quantity. The environment authority must look after the land, which will restore the land after the completing of a life of a petroleum project. The mining company will never liable for any environmental authority if the Queensland government failed to satisfy all the requirements (Richert, Rogers & Burton 2015).
The duty of the secretary is to look after all the requirement which the mining company will follow before apply for the license under the Environmental Protection Act 1994.
In the above assignment, it is briefly described how a mining company can obtain a license under the Environmental Protection Act 1994 through the Department of Natural Resources of the Queensland government. They must follow the above-mentioned instruction before applying for the license. It is the duty of directors that they will follow the rules abd regulation before running the mining company.
Environmental legislation (Department of Environment and Heritage Protection). (2017). Ehp.qld.gov.au. Retrieved 15 May 2017, from https://www.ehp.qld.gov.au/management/non-mining/environmental-legislation.html
Glasson, J., Therivel, R., & Chadwick, A. (2013). Introduction to environmental impact assessment. Routledge.
Hanrahan, P., & Bednall, T. (2015). Independence of directors affiliated with substantial shareholders: issues of law and corporate governance. COMPANY & SEC. LJ, 33, 239.
Hedges, J., Bird, H. L., Gilligan, G., Godwin, A., & Ramsay, I. (2017). The Policy and Practice of Enforcement of Directors' Duties by Statutory Agencies in Australia: An Empirical Analysis.
Langford, R. T. (2015). Directors' Duties: Conflicts, Proactive Disclosure and S 181 of the Corporations Act.
Pettersson, M., Oksanen, A., Mingaleva, T., Petrov, V., & Masloboev, V. (2015). License to mine: A comparison of the scope of the environmental assessment in Sweden, Finland and Russia. Natural Resources, 6(4), 237.
Portney, P. R. (Ed.). (2016). Public policies for environmental protection. Routledge.
Richert, C., Rogers, A., & Burton, M. (2015). Measuring the extent of a Social License to Operate: The influence of marine biodiversity offsets in the oil and gas sector in Western Australia. Resources Policy, 43, 121-129.
Smith, H. (2015). Australia's Company Law Watchdog: ASIC and Corporate Regulation.