Course Title: Apply legal principles in corporations and trust law
Part B: Course Detail
Teaching Period: Term1 2024
Course Code: BAFI5223C
Course Title: Apply legal principles in corporations and trust law
School: 525T Business & Enterprise
Campus: City Campus
Program: C6181 - Advanced Diploma of Accounting
Course Contact: Doug Gourlay
Course Contact Phone: +61 3 9925 5944
Course Contact Email: doug.gourlay@rmit.edu.au
Name and Contact Details of All Other Relevant Staff
Anthony Di Stasio
anthony.distasio@rmit.edu.au
Nominal Hours: 60
Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.
Pre-requisites and Co-requisites
There are no pre-requisites for this unit.
Course Description
This unit describes the skills and knowledge required to research and analyse legal principles and issues in corporations and trust law matters and then apply this knowledge to provide advice to clients.
It applies to individuals who work with corporations and trust laws in the workplace as determined by the job role, legislation, rules, regulations and codes of practice relevant to different jurisdictions.
Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. This unit is designed to meet educational requirements of the Tax Practitioner Board (TPB). Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
National Codes, Titles, Elements and Performance Criteria
National Element Code & Title: |
FNSTPB504 Apply legal principles in corporations and trust law |
Element: |
1. Research legal aspects of corporations and trust law relevant to client's circumstances |
Performance Criteria: |
1.1 Identify client circumstances that require advice on corporation and trust law matters 1.2 Research corporations and trust law and related legislation, regulation and practice 1.3 Identify different types of relevant corporations and trust law transactions, and clearly outline their legal context, establishment procedures and purpose 1.4 Identify legal principles applying to corporation and trust matters that are relevant to client circumstances |
Element: |
2. Analyse issues and risks associated with operation of a business |
Performance Criteria: |
2.1 Identify areas of risk in application of law in corporation and trust matters 2.2 Analyse how legal issues impact on different types of legal entities 2.3 Evaluate relevance to client circumstances and implication of risks for structure, operation and performance of different types of legal entities 2.4 Assess ways in which risk mitigation is addressed in formation and operation of different types of legal entities |
Element: |
3. Apply knowledge of law to business structures |
Performance Criteria: |
3.1 Collect and collate client's business information for analysis 3.2 Interpret, analyse and process available information to obtain required knowledge on client's business structure requirements 3.3 Seek advice and guidance of specialist where required, to interpret, analyse and synthesise client's relevant information 3.4 Provide advice to client based on identified facts and relevant laws |
Element: |
4. Maintain legal knowledge |
Performance Criteria: |
4.1 Review clients circumstances and business structure, and apply any changes in relevant aspects of corporations and/or trust law if necessary 4.2 Access and use systems for maintaining up-to-date knowledge about relevant legal aspects of corporations and trust law 4.3 Review relevant legal sources regularly and apply any changes in daily work |
Learning Outcomes
Details of Learning Activities
This subject is clustered with ACCT5430C Monitor Corporate Governance Activities.
Students will be progressively introduced to skills and knowledge required to research corporate governance reporting trends, examine corporate governance standards and practice and review compliance to develop and implement processes and procedures for meeting corporate governance obligations. Students will also develop skills and knowledge required to apply legal principles in corporations and trust law matters.
In-class activities will account for some of the nominal hours allocated to this course and will include a range of self-paced and collaborative learning activities such as class discussion, completion and review of set exercises and work, tests, team presentation and a comprehensive individual assignment.
The hours of self directed/self paced learning by students will be taken up with reading, research, set work on exercises and the completion of the individual assignment outside scheduled class time. F2F classes are in total three (3) hours per week. The learning activities described will be covered in these classes and we expect you to participate and contribute in all scheduled learning activities.
Teaching Schedule
Week 1 |
Introduction Welcome and Orientation Introduce the content in week 1 Corporate Governance Introduction
Choosing a Business Structure · Types of Business Structures · Advantages / Disadvantages of Business Structures
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Reading: Power points. Corporate Governance Principles and Recommendations Activities: HIH Case Reading: Power-Points Advantages and Disadvantages summary Activities: Review Questions |
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Week 2 |
The Company · The Corporations Act 2001 · Separate Legal Entity · Shareholders and Limited Liability · Classification of Companies · Registration · Company Obligations · Promoters and Pre-incorporation Contracts |
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Week 3 |
Management · Division of Power within a Company · Types of Directors · How Directors are appointed · Resignation and removal from Office · Appointment of Company Secretary · Remuneration of Directors · Membership |
Reading: Power points Types of Directors Activity: Directors Cases True and False questions |
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Week 4 |
Directors’ Duties · Fiduciary Duties · Statutory Duties · The insolvent trading rule Corporate Reporting |
Reading: Power Points Activity: Directors cases relating to duties, insider trading etc. Review Questions |
Leaning Quiz 1 & 2 due for submission |
Week 5 |
Share Capital & Fundraising · Financial resources of a Company · Classes of Shares · Issuing Shares · Retention of Capital · Share Buy-Backs · Going Public |
Reading: Powerpoints Call and Put option examples share placement Activity: Review Questions |
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Week 6 |
Trusts & Superannuation · Elements of a Trust · Types of Trusts · Continuity of Existence · Winding up Trusts · Superannuation- Purpose, Regulation, types of Superannuation Funds, Regulatory Framework and Proposed Changes |
Reading -Trust power points and Superannuation file Activity: Review Questions |
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Week 7 |
Framework of the Australian Legal System · Origins of Law in Australia · The Australian Constitution · Types of Laws · Sources of Law · Jurisdiction and Hierarchy of Courts |
Reading: Power points Doctrine of Precedent, equity law, court hierarchy
Activity: Review Questions |
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Week 8 |
Negligence and Risk · Meaning of Tort · What law applies to Negligence · The elements of Negligence · Negligent Misstatement · Pure Economic Loss · Defences to Negligence |
Reading: Power points
Activity: Self-test questions
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Assessment 1 Due to be submitted in CANVAS |
Week 9 |
External Administration of Companies · Voluntary Administration · Receivership · Winding Up or Liquidation |
Reading: Power Points Cases Activity: Review Questions
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Feedback on Assessment 1 |
Week 10 |
Risk Management · Risk Assessment · Risk Management framework · Identify Risk · Determine possible causes · Determine possible consequences · Determine current likelihood · Determine Risk Rating · Risk Treatment |
Reading: Power Points RG259 Activity: Review Questions |
Assessment 2 Due for submission |
Week 11 |
Corporate Governance Framework & Ethics · Internal Controls and Corporate Governance · Corporate Governance Requirements · Corporate Governance Structures in Australia · Corporate Governance Regulations · Standards for good Corporate Governance · Management Accountability · ASX Corporate Governance Principles and Recommendations · Ethical Responsibilities |
Reading: Power Points Corporate Governance Handout APES 110 Code of Ethics Activity: Review Questions |
Feedback on Assessment 2 |
Week 12 |
Assessment 3 Part 2 - Meeting with Billy Wright This week students will conduct the meeting with Billy Wright to present a recommendation on suitable business structures after considering the circumstances of Billy and his friends |
Reading: Read Part 2 of Assessment 3 prior to meeting |
This is a requirement for Part 2 of Assessment 3. Students will be allocated a time for the meeting and need to take take minutes during the meeting |
Week 13 |
Revision |
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Week 14 |
Revision |
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Week 15 |
Assessment 3 | Assessment 3 Due | |
Week 16 | Resubmissions |
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Week 17 | Resubmissions |
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Week 18 | Resulting |
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Learning Resources
Prescribed Texts
The application of Legal Principles in Business Corporation & Trust Law by Penelope McCann |
ISBN 9781760730796 |
References
Other Resources
Overview of Assessment
In order to achieve competency in this unit, you must provide:
Performance Evidence
Evidence of the ability to:
◾research changes to, or new, legislative requirements in relation to corporations and trust law relevant to the client’s circumstances and business structure requirements
◾apply current statute, common law and equitable principles in relation to corporations and trust law relevant to the client’s circumstances
◾present a recommendation on suitable business structures or legal entities to the client after considering the client’s circumstances
Knowledge Evidence
To complete the unit requirements safely and effectively, you must:
◾describe the operation of the Australian legal systems and processes relevant to corporations and trust law including:
- basic principles, current statute, common law and equitable principles
- roles and responsibilities of key organisations
- constitutional considerations
- separation of powers
- basic principles of the law of torts, particularly relating to negligence and negligent misstatement
- courts and regulatory bodies
◾outline how laws are enacted and their underlying policy aims
◾explain how those laws may be interpreted by existing common law and equitable rules and applied to corporations and trusts
◾analyse legal concepts of business organisational structures, and underlying regulation including the application of these to:
- sole traders
- partnerships
- corporations
- trusts
- agencies
- joint ventures
- incorporated associations
◾examine legal aspects of superannuation with reference to:
- ways in which superannuation can be accumulated and taken
- who can provide superannuation products and how those providers and their products are prudentially licensed and regulated
- duties of superannuation trustees
- how superannuation interests are protected and litigated
- current and future developments in superannuation law and policy
◾identify and reference the key features of Australian corporations law and requirements to analyse issues and risks relating to:
- nature of a company
- company registration
- promoters and pre-registration contracts
- company constitution and replaceable rules
- contracting with others
- fundraising
- share capital
- member meetings
- corporate management
- directors’ duties
- member remedies
- bankruptcy and insolvency
◾examine legal concepts and scope of law covering trusts with particular reference to:
- structure of a trust
- trust deed
- common law duty
- role and responsibilities of a trustee
- types of trusts
- member meetings
- corporate management
- member remediation
- bankruptcy and insolvency
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the tax and legal fields of work and include access to:
- office equipment, technology, software and consumables
- relevant legislation, regulations and codes of practice
Assessors must satisfy NVR/AQTF assessor requirements.
This unit is designed to meet the education requirements of the Tax Practitioner Board (TPB). Where registration with the TPB is sought, assessment must reflect the conditions described by the regulator which stipulate that a significant amount (at least 40%) must be completed under some form of independent supervision. Where recognition of prior learning (RPL) is used, it must also meet the requirements of the Board’s policy on RPL.
Details of requirements can be accessed on the TPB website at <http://www.tpb.gov.au>;.
You are advised that you are likely to be asked to personally demonstrate your assessment work to your teacher to ensure that the relevant competency standards are being met.
Feedback
Feedback will be provided throughout the semester in class and/or online discussions. You are encouraged to ask and answer questions during class time and online sessions so that you can obtain feedback on your understanding of the concepts and issues being discussed. Finally, you can email or arrange an appointment with your teacher to gain more feedback on your progress.
You should take note of all feedback received and use this information to improve your learning outcomes and final performance in the course.
Assessment Tasks
Assessment Tasks
Please note that this course is clustered/co-delivered and co-assessed holistically as a group of two (2) course being, ACCT5430C - Monitor Corporate Governance Activities and BAFI5223C Apply Legal Principles in Corporation and Trust Law. As a result, other than the elements and critical aspects to this course, the two course guides will depict the same information.
Task 1: Short answer assessment task (40 questions) - This assessment is due as per CANVAS Syllabus. (Submitted in CANVAS).
Task 2: Product assessment task - There are 3 parts to this task, you will be required to complete research and prepare a report on Part A -Australian legal systems, corporations and trust law, Part 2 Superannuation and Part 3 Corporate governance failure.
This assessment is due as per CANVAS Syllabus. (Submitted in CANVAS).
Task 3: This practical assessment will allow students to demonstrate their ability to research and analyse legal principles and issues in corporations and trust law matters and then apply this knowledge to provide advice to clients. There are 4 parts to this task using a business scenario.
This assessment is due as per CANVAS Syllabus. (Submitted in CANVAS).
The Teacher or Course Coordinator may at any time ask students to demonstrate and/or reproduce assessments to validate authenticity. AND Students must satisfactorily complete all assessment tasks in order to obtain competency in this course.
Assessment Matrix
The assessment matrix that maps all the assessment is available on CANVAS
https://rmit.instructure.com/courses/30267/assignments
Other Information
Late Submission Procedures
You are required to submit assessment items and/or ensure performance based assessment is completed by the due dates.
If you are prevented from submitting an assessment item on time, by circumstances outside your control, you may apply in advance to your teacher for an extension to the due date of up to seven calendar days.
More Information: https://www.rmit.edu.au/students/student-essentials/assessment-and-exams/assessment/extensions-of-time-for-submission-of-assessable-work
Where an extension of greater than seven days is needed, you must apply for Special Consideration. Applications for special consideration must be submitted no later than two working days after the assessment task deadline or scheduled examination.
More Information: https://www.rmit.edu.au/students/student-essentials/assessment-and-exams/assessment/special-consideration
Resubmissions (VE Programs):
If you are found to be unsuccessful in a particular Course Assessment Task (or you do not submit/attend) you will be allowed one resubmission. Your teacher will provide feedback regarding what you need to do to improve and will set a new deadline for the resubmission.
If you are still not meeting the assessment requirements you must apply to your Program Manager in writing outlining the steps you will take to demonstrate competence in your course. Your submission will be considered by the Program Team and you will be advised of the outcome as soon as possible.
Grading & re-submissions
Successful re-submissions will contribute a CA only (Competency Achieved) result to your overall grade for the course.
Adjustments to Assessment
In certain circumstances students may be eligible for an assessment adjustment. For more information about the circumstances under which the assessment arrangements might be granted please access the following website:
Marking Guide (Competency):
You must demonstrate that you have all the required skills/knowledge/elements in the unit of competency you are studying.
You will receive feedback on each assessment task that will inform you about your progress and how well you are performing.
Other ResourcesPrescribed Textbook is: The application of Legal Principles in Business Corporation & Trust Law by Penelope McCann
Course Overview: Access Course Overview