QUESTION- 5

The three directors of Masks R Us Pty Ltd, successfully negotiate a contract worth $150, 000, on behalf of the company, to supply masks to a large retail chain of stores.Tom and Dick then incorporate a new company, Masks Suppliers Pty Ltd, and cause the new company to perform the supply contact.Harry is unhappy about this development and contacts ASIC.

Advise ASIC of its options under the Corporations Act and the legal consequences of those options.