The Corporations act refers a regulation for the directors and the officers maintain good faith during exercising their powers for the official interests of the corporation. The research work refers to the collection, analysis and critically evaluating a scenario or a case which is obtained from indirect data collection procedure. This assignment deals with the research work of law which deals with a case related to the breaching of company director’s duties. It further focuses on the duties and responsibilities which caused the breach of the respected director of the company. It further focuses on analysing the decision of the court. Thereby discussing the reasons for the decisions in view the validity and the authentication are being discussed in respect of the ASX case study no 8.
Task 1: Report
1. Case introduction:
The case involves 2 CLICK DTRs with their inexpertise and inappropriateness in handling the trading system of ASX. With the convenience of passing of ASX examinations the DTRs are provided with a unique confidential user id and password for their own account (Anon, 2016). In the CLICK trading system of ASX, Mr. Pink and Mr Green has been appointed as the responsible DTRs. Mr. Pink learnt roles and responsibilities under the training of Mr. Green and learnt to maintain the office of a DTR. The incident came in front after a wrong execution of a crossing combination. Mr. Green earlier shared his confidential unique identifier as well as the user id and password with Mr. Pink.
The broker in ASX agreed a trading option in which Mr. Pink traded under the account of Mr. Green. It was against the rules of the corporations to share unique identifier no with any other persons even working in a same position. The incident got even serious as Mr. Green was on leave and Mr. Pink was trading under the unique identifier no of Mr. Green. Trading under anyone else’s account is totally breaching the code of conduct issued by corporations (Anon, 2016). Mistakes were done by both of the two DTRs as Mr. Green shared his confidential user id and password and Mr. showed his inappropriateness by using other person’s identifier while trading a particular option with brokers. It was clearly the failure of the supervision of brokers and management that the DTRs have been able to continue their service. It was evident enough that the main problem rises with an operator error but it goes beyond the limit as it was simply a breach of duty from the end of the broker as it does not have any severe control over it DTRs. This is the reason why MR. Green gives his confidential identifier to MR. Pink while going on a leave.