Sino Australia Oil and Gas Ltd Case Study Free Sample

Question: Discuss about the Sino Australia Oil and Gas Ltd. Answer: Introduction: Sino Australia Oil and Gas Ltd (Sino) was a holding company of the companies operated in china. Sino basically provide services related to drilling to the companies which are engaged in the oil and gas industry. On 12th December 2013, Sino listed on Australian stock exchange after raising the Initial Public Offer (IPO) of $ 13.6 million approx (ASIC, 2016; ASIC, 2016). Zhaodong HuaYing Oil Drilling Service Company Limited (HuaYing) was a subsidiary of Sino Australia Oil and Gas Ltd. In March 2014, investigation was commenced by the ASIC to investigate whether Sino has contravened the provisions of corporation act by providing misstatements in the prospectus. At the same time, ASIC also obtained injunction from the Federal Court of Australia to freeze the bank account of company in Australia because Mr. Shao was trying to transfer the amount of $ 7.5 million which was received from initial public offer made by the company to the bank account of china. The purpose of transfer such amount was not disclosed in the prospectus of Sino (ASIC, 2014; HWL EBSWORTHS LAWYERS, 2016). In november 2015, ASIC start proceedings against the chairman Mr Tianpeng Shao, and also impose financial penalties against Mr. Shao and order for disqualification of director also and on 21 may 2015 court of Australia on the application of ASIC pass order for the appointment of Mr McCluskey as a provisional liquidator of the company. ASIC made application for the liquidation of the company because of the misstatements made by the company in the prospectus. In 2015, board of directors of sino asking for the advice from their lawyers to protect the interest of their shareholders. Lawyers of the company give advice to the management to appoint provisional liquidators in the company (ASIC, 2015). Main issues in the case are: Misconduct and mismanagement of the affairs of the company. Whether or not Mr. Shao was involved in the contraventions committed by Sino. Misstatement and presentation of wrong facts in the statement of the company by the directors of the company. shao try to transfer the funds of $7.5 million from the bank account of Australia to the bank account of china. The purpose of transferring those funds is not disclosed in the prospectus of Sino. Board of directors of the company does not have complete information to take the sound decision. References: ASIC, (2014). 14-045MR ASIC obtains urgent injunction freezing bank accounts of Sino Australia Oil and Gas Ltd. Retrieved On 22nd September 2016 From: https://www.asic.gov.au/about-asic/media-centre/find-a-media-release/2014-releases/14-045mr-asic-obtains-urgent-injunction-freezing-bank-accounts-of-sino-australia-oil-and-gas-ltd/. ASIC, (2015). 15-124MR Provisional liquidator appointed to Sino Australia Oil and Gas Ltd upon ASIC application. Retrieved On 22nd September 2016 From: https://asic.gov.au/about-asic/media-centre/find-a-media-release/2015-releases/15-124mr-provisional-liquidator-appointed-to-sino-australia-oil-and-gas-ltd-upon-asic-application/. ASIC, (2016). 16-062MR Court orders the wind up of Sino Australia Oil and Gas Limited. Retrieved On 22nd September 2016 From: https://asic.gov.au/about-asic/media-centre/find-a-media-release/2016-releases/16-062mr-court-orders-the-wind-up-of-sino-australia-oil-and-gas-limited/. ASIC, (2016). 16-255MR Court finds against Sino Australia Oil and Gas Limited and its former chairman Tianpeng Shao. Retrieved On 22nd September 2016 From: https://asic.gov.au/about-asic/media-centre/find-a-media-release/2016-releases/16-255mr-court-finds-against-sino-australia-oil-and-gas-limited-and-its-former-chairman-tianpeng-shao/. HWL EBSWORTHS LAWYERS, (2016). Is your appointment valid? ASIC v Sino Australia Oil Gas Ltd. Retrieved On 22nd September 2016 From: https://www.hwlebsworth.com.au/component/k2/item/1990-is-your-appointment-valid?-asic-v-sino-australia-oil-gas-ltd.html.