all the questions in ILAC method. Question 1 (5 marks) What is ASIC and what is its role? Provide examples to illustrate your answer and refer to legislation or cases where relevant. Question 2 (5 marks) What is 'corporate governance'? Provide examples to illustrate your answer and refer to legislation or cases where relevant. Question 3 (5 marks) What is 'corporate liability'. Provide examples to illustrate your answer and refer to legislation or cases where relevant. Question 4 (5 marks) Sydney City Investments Pty Ltd ('SCI') is an investment company based in George Street, Sydney that focuses on buying and developing commercial property sites and then onselling them at a profit. It decides to expand into the retail property market with a focus on buying and then leasing retail properties. To do this, SCI creates a wholly-owned subsidiary company called Sydney Retail Leasing Pty Ltd ('SRL') to develop this side of the business. SCI's three directors appoint themselves as SRL's three directors. This is convenient because it means they can discuss matters for both companies at the same time when they have their board meeting each month. They make sure, however, that afterwards they write up separate board meeting minutes for the two companies. Over the next few years, they operate the retail leasing business by borrowing heavily from Eastpac Bank Ltd ('Eastpac') to buy properties and then make loan repayments from the money they receive in rent. After three years, the retail business has become successful to the point where, SCI arranges an interest-free loan from SRL, when SCI's cash-flow becomes tight. However, in March 2020, the coronavirus causes retail property prices and rental incomes to plummet and SRL eventually defaults on its loan repayments to Eastpac. SRL now does not have enough assets to pay back all the money it owes Eastpac. Advise Eastpac on its legal rights in relation to recovering the money it lent to SRL, referring to relevant legislation and cases. Question 5 (5 marks) Adam, Brenda, Cindy, Devaki and Ewan are enthusiast stamp collectors and want to start an online business that buys and sells historical stamps from around the world. They decide to set up a company to do this. All five agree to put in $5,000 each to buy equal shares in the company. Adam and Brenda are assigned to put in an application to ASIC to register a company called Stamp World Pty Ltd ('Stamp World'). Cindy is to look into getting a web design company to design a website and get a quote. She visits Web Solutions Pty Ltd in Elizabeth Street and the salesman spends some time showing her various web design packages. Cindy is very impressed with the 'Super Delux' package but is a little concerned about the $8,000 cost. The salesman informs her, however, that they currently have a 25 per cent sale on that package, but that it finishes at 6 pm that day. Cindy excitedly calls Adam from the store to get his thoughts, as Adam has been the driving force behind starting the business. He says 'Yes. Let's do it'. Cindy signs the contract on behalf of Stamp World and the five directors, then and there. The following week, Adam and Brenda's application is successful and the company is registered with all five as directors. However, at their first board meeting, Brenda, Devaki and Ewan are unhappy about the cost of the website package and refuse to accept the contract, saying the basic package, at a quarter of the cost, would have been sufficient. Advise the parties/entites of their respective legal rights and liabilities, referring to relevant legislation and cases. Question 6 (5 marks) As part of establishing Stamp World (as detailed in the previous question) and prior to the company being registered by ASIC, Ewan is assigned to investigate buying some stamps that the new company can have as stock when it first launches. He visits a local stamp dealer, Mustufa, of Mustufa's Stamps Pty Ltd, who is very keen to get Ewan's business. Mustufa tells Ewan that if the new business buys stamps from him worth over $10,000, he will give Ewan a rare 1901 Australian Federation stamp worth around $900 as a personal gift to show his appreciation. Ewan is excited about this. The next day, at a meeting of the five friends, he recommends that they buy two dozen rare stamps worth $11,000 in total. However, he doesn't mention the personal gift Mustufa offered him. The others all agree with Ewan's recommendation. So, after the meeting, Ewan goes ahead and buys the stamps and also receives the gift of the Federation stamp from Mustufa. Advise the various parties/entites of their respective rights and liabilities, referring to relevant legislation and cases