Angus Mumford is a 35-year-old abalone diver from Gypsy Point, a small coastal town in far east Victoria.Mr. Mumford enjoys working alone and not having to answer to anyone but himself. His annual income is $120,000 per annum.

Due to overfishing in the past 25 years, the stocks of abalone are subject to strict protective legislation to ensure stocks regenerate. The Abalone Fishing Act ("the Act") prohibits fishermen from catching more than 20 tonnes of abalone in a calendar year. Under the Act it is an offence to catch more than the quota limit and offenders can be fined up to $200,000.

Mr Mumford's sole trader business has the capacity to catch much more than 20 tonnes of abalone per year.Our client is extremely frustrated that his ability to profit from his fishing business is restricted by this legislative quota.

Required

Investigate whether there is any benefit for our client incorporating his business.

In your analysis (this means using your own words) consider whether Mr. Mumford would be personally liable if the incorporated business is fined for exceeding the quota limit.

Please support your analysis with relevant sections of the Corporations Act 2001 (Cth) and/or case law.