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e.php/197377/mod_resource/content/6/TLAW%20607%20%20%5BTopic%209%20Corporate%20Governance%20%28%20 63 / 64 Review Question (1) for Topic 9 Lee is the MD of Sports Lid, a Sydney company, which is in the business

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e.php/197377/mod_resource/content/6/TLAW%20607%20%20%5BTopic%209%20Corporate%20Governance%20%28%20 63 / 64 Review Question (1) for Topic 9 Lee is the MD of Sports Lid, a Sydney company, which is in the business of constructing sporting facilities. Lee has special expertise in preparing tender bids on behalf of Sports Lid. Sports Lid prepared a tender contract for the Japanese Olympics Committee (JOC) in June 2018 to build a football stadium for the Olympic Games in Japan. Lee is responsible for the cost and profit analysis for the tender contract and for preparing and lodging the tender bid on behalf of Sports Lid. The closing date for the lodgement of tenders was 1 August 2018. Lee knew that this is a highly profitable tender project. In July 2018, Lee incorporated a company called Rich Pty Ltd in which he is the sole shareholder and director. Lee successfully tendered for this construction contract on behalf of Rich Pty Ltd in July 2018. the JOC. Rich Pty Lid won the construction tender [its bid was lower than Sports Lid] and is awarded the contract by Since winning the tender, Rich Pty Ltd has successfully completed construction of the football stadium and has made a $1000,000 profit. Directors of Sports Lid have recently become aware of Lee's participation in the tender bid by Rich Pty Ltd. (a)Advise Sports Lid whether the company can sue Rich Pty Lid and recover the profit of $1000,000 made by Rich Pty Ltd. [20 Marks] (b)ASIC, as the corporate regulator, has a range of enforcement tools under the Corporations Act. Advise ASIC which is the most appropriate law enforcement tool to use, with reference to the question above, and the reasons for advice. Your answer must also include the potential legal consequences of the advice given to ASIC. [10 Marks] Your answers above must be supported by relevant precedents and relevant provisions of the Corporations Act. TLAW 607 Topic 9 (Directors 63 Duties and Liabilities) O 0 9 acer

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