7159AFE Principles of Business and Corporations Law Week 12 Lecture Hypothetical Question Exquisite Wines Ltd (\"EW\") is a public company in the business of manufacturing boutique wines. Steven, Managing Director of Exquisite Wines, held 90 of the 100 shares in EW. Steven was at all times the person in charge of EW's day to day activities including maintenance of its financial records and was its controlling mind. The other directors of EW are Paul and Bob, who as members of the Board, delegated these powers to Steven as Managing Director. In May 2016, EW issued a prospectus to raise $7 million (issue price @ $1.00) and planned to list on the ASX. EW failed to raise the minimum subscription under the initial public offering of shares (\"IPO\") by the required time (August 2016) and was not listed on the ASX. Even though subscribers paid $2.5 million to EW as part of the IPO some of the investors were not repaid their subscription monies. Steven was the sole signatory of the EW accounts. The Constitution of EW provided that any payments of more than $200,000 required the approval of the Board. In August 2016. Steven transferred $300,000 from the EW accounts to his wife, Beryl who used the money to purchase a family home in her sole name. The home is a seven bedroom mansion located at Sovereign Island on the Gold Coast. $200,000 represented subscription monies and the remaining $100,000 was EW's cash at bank. ASIC received a complaint from Kevin, an investor, who had applied for shares and requested a refund following the unsuccessful IPO. Advise ASIC as to the claims it has against Steven for breach of sections 182 and 180 of the Corporations Act