Environmental Laws and Ethics

Question: Discuss about the Environmental Laws and Ethics. Answer: Introduction The efficiency of lawful reformation in the state of law is largely restricted within three levels of Australian government. Legal reformation has been enforced to attain the sustainable environment with the help of local, state territory and Federal Parliament. On the contrary, the three levels have applicable system of law, which represents to the government so that it can place these rules in action (Coffee et al. 2015). The theory of rule of law is imposed which states that no person is considered beyond the regulation but must be treated equally in the eyes of law. In saying so, law is considered as ever-changing and receptive entity helps in modifying it over the course of time. On 30th January 2017, an article published on ASIC news reported the imprisonment of David Kirkpatrick after finding that an offence is committed on publishing an advertisement, which was not true with the objective of expanding the share capital of the company. Because of the stated resources David Kirkpatrick, the former Chairman of Waratah was sentenced for a term of 12-month imprisonment. The publication stated that the company was receiving approximately $100 million from china, which was considered to be true. On the contrary, the money was destined to be used to improve the surrounding image of the company in accordance with the report stated by the manager. He assigned with the responsibility of amending the advertisement within a span of ten days however, he opted not to correct it. The article laid down the several types of law, which is stated below. Lawful Rising of Issue: The publication raises an issue of Australian Corporate Law. Corporate law can be defined as the practice or study where shareholders, directors, employees, creditors and different type of stakeholders in the form of consumers and community interact with the environment or one another. The major reason behind the sentence of David Kirkpatrick was his failure to comply with the Corporate Law under the regulations of ASIC. The court stated in his declaration that David is not considered appropriate to serve the position of managing director in a public organisation (Chen, Ramsay and Welsh 2016). Through the false advertisement, he misrepresented the company and mislead the public so that the he can increase the share capital of company from the dwindling cost of 3.6. Mainly due to this reason he was banned from discharging his duties in the position of managing director of a public company for the period of five years under the corporation law in Australia. The rule was implemented by ASIC and companies operating in Australia are under obligations to abide by the rules. ASIC imposed the law with the objective of ensuring that every individuals and organisations behave in a certain manner as notified under the code of conduct. In compliance with the law it is anticipated that individuals must provide true and fair information to the public without any objective of misleading others in the community. As stated under the article, David Kirkpatrick was anticipated to provide true news to the public. Present Corporate Law Reforms: The corporation law in Australia is undergoing reformation. Several types of actions will be integrated in order to facilitate nurturing of financial investment by decreasing his costs of fundraising encountered by the Australian companies. Fundraisers should disclose the potential investors with all relevant information regarding the available merchandise to bring up the system of capital in Australia with major international market segments (Welsh 2014). It is becoming clear that reformation is necessary even though the principle is reasonable in theory to prohibit the cost of fundraisers. Prospectus tends to consume a large amount of time and is often complicated to understand as it obscure the information, which is appealing to the consumers. Shareholders while reading the prospectus can face difficulties in completely understanding the them due to this it consumes the duration and intricacy. Issuers have often criticised that they are compelled to state needless information in the prospectus and tends to increase the cost of prospectus (Koch 2016). Below stated are the following reformations that will raise the effective procedure of raising fund along with the guidelines of reducing the business charges. Introducing a brief form of prospectus for retail shareholders having technological information within the separate documents that is available on demand; Providing permission to buyers in certain companies to locate a short statement of account involving vital information as opposed in the full prospectus; Enabling companies to make prospectus in digital structure and allocating them through the help of Web or other form of Multimedia. In agreement with such kind of reformations, it will help in easing out things present in Australian corporate world. First, the reformation process looks forward to shortening the procedure of delivering information from an organisation to the public. The reformation procedure will help in regulating the information passed by the company. This will assist in regulating the industry along with the protection of interest of investors by assuring that are only provided with those information that provides true and fair image of the establishment (Welsh 2014). This will be helpful for the investors, as this will assist them in undertaking informed decision making each time when they intend to make decisions of investment. Conclusion: The theory of corporate law is regarded as essential in the industry. The corporate law helps in regulating the business establishment in order to ensure that they operate fairly to their customers, investors and other stakeholders involved in their organisation. Without the law it will be difficult for the corporate world to provide protection to its shareholders and stakeholders. Hence, ASIC plays an important role in ensuring that the corporate law is effectively followed by the organisation functioning in Australia. For instance, as stated in the article David Kirkpatrick must have acted wisely by understanding that it acted against the law by providing false information to the public. He must have also taken corrective measure to correct the information in order to avoid imprisonment. Reference List: Coffee Jr, J.C., Sale, H. and Henderson, M.T., 2015. Securities regulation: Cases and materials. Chen, V., Ramsay, I. and Welsh, M.A., 2016. Corporate law reform in Australia: An analysis of the influence of ownership structures and corporate failure. Welsh, M., 2014. Realising the public potential of corporate law: Twenty years of civil penalty enforcement in Australia.Fed. L. Rev.,42, p.217. Koch, D., 2016. Editorial: Future Prospects.The Journal of Space Syntax,6(2), pp.vi-vii.