Journal Analysis Australian Law Essay Example | Topics and Well Written Essays - 750 words

Journal Analysis Australian Law - Essay Example ad issued public statements that were â€Å"misleading the customers and the public.† It can be recalled that SF, previously considered as one of the foremost financial planners of the nation, began to crumble when it defaulted payments of debts, that ran by tens of million, to the CB. Underpinning this financial collapse was the company’s failure to issue margin calls to hundreds of its clients whose securities have fallen below margin minimum requirements after the sharemarket plunged. The company was forced to place itself under voluntary administration after CB gave it just one day to pay its debts (O’Shaughnessy 2009). As indicated above, the SF case seems to have catalyzed allegations of deception and misrepresentation being bandied back and forth from one side to another. Initially, SF had accused CB of misleading its clients to think that the former has the sole responsibility to advise them on margin loans. The banking institution, on the other hand, now accuses SF to be guilty of the same thing with regards to statements it has issued to the public. The doctrine of misleading conduct under the Australian corporate law is embodied in different Commonwealth Acts. In the Trade Practices Act of 1974, for example, s 52 thereof specifically prohibits corporations engage in trade and commerce from conduct precisely described therein as â€Å"misleading or deceptive or is likely to mislead or deceive. A follow-up provision under the same law is s 53 which enumerates ten misleading acts. The enumerated conduct are, among others, â€Å"falsely represent that services are of a particular standard, quality, value or grade† and â€Å"make a false or misleading representation concerning the existence, exclusion or effect of any condition, warranty, guarantee or, right or remedy† (s 53, Trade Practices Act 1974). On the other hand, the Australian Securities and Investments Commission Act 2001 (ASIC) likewise have a corresponding provision touching on the doctrine of