...TEAM ASSIGNMENT – SEM 2 - 2013-07-30 Lily and Morris are the directors and shareholders of Zap Graphics Pty Ltd. Recently, the company has began to suffer cash flow problems and needed additional capital. Lilly persuaded Rodney, a close friend of hers, to invest $100,000 in Zap Graphics Pty Ltd. Lily and Morris held a directors meeting and decided to issue Rodney with two shares in the company. A general meeting of shareholders also appointed Rodney as the director of the company. At the shareholders meeting Rodney said that he would not be attending board meetings and wanted to be treated as a “silent partner.” The company’s financial position improved as a result of Rodney’s $100,000 investment, as well as the considerable efforts of Lily and Morris. Despite the company’s increased profits Lily and Morris decided not to declare a dividend for the current year. Instead they gave themselves pay raises and arranged for the company to lease two new Mercedes-Benz cars for their personal use. Rodney began to attend directors meetings and made a number of suggestions to improve the profitability of the business. He also questioned Lily and Morris about their pay raises. Lily and Morris resented these questions and took the following actions: - They formed another company, Lily, Morris & Carol Graphics Pty Ltd, in which Rodney was not involved and diverted a valuable government design contract that they had been negotiating to their new company. - They also...
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...Law of Investment Assignment | | Contents 1.1 Assumptions 3 1.2 Common Law 4 1.2.1 Fiduciary Duties 4 1.3 Conduct & Disclosure in the Investment Advisory Process 5 1.3.1 Suitability Rule 5 1.3.2 No Conflict of Interest Rule 6 1.4 Investor Protection Dispute Resolution 7 1.4.1 Unconscionable Conduct 7 1.4.2 Misleading and Deceptive Conduct 7 1.4.3 Dispute Resolution in the investment Industry 8 1.5 Remedies 9 1.5.1 Avenues of remedy 9 1.5.2 Likelihood of success 9 2.1 Enhanced Due Diligence for New Products 10 2.2 Enhanced Documentation & Quality of Information Collected by FAs 10 2.3 Restrictions on Sale Without Advice 11 2.4 Restrictions on Bank Teller Activities 12 Appendix 13 1.1 Assumptions We have decided to list some ideas that are held primary throughout this assignment for the ease of discussion. * Paula is a retail client We should make the distinction whether Paula is a retail client or a wholesale client, it is important to do so as most of the investor protection provisions of Ch 7 relates only to services provided to retail clients. The definition of retail client differs with the nature of the financial product. It is clearly identified that Paula was not making an investment in general insurance products, superannuation and RSA products, we would intuitively classify her as a retail client under all other financial products and allow her to pass the four threshold tests: product value of $500,000, individual...
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...Egypt Investment Climate • • • • • • • • • • • • • • • • • • • Openness to Foreign Investment Conversion and Transfer Policies Expropriation and Compensation Dispute Settlement Performance Requirements and Incentives Right to Private Ownership and Establishment Protection of Property Rights Transparency of Regulatory System Efficient Capital Markets and Portfolio Investment Competition from State Owned Enterprises Corporate Social Responsibility Political Violence Corruption Bilateral Investment Agreements OPIC and Other Investment Insurance Programs Labor Foreign-Trade Zones/Free Ports Foreign Direct Investment Statistics Web Resources Return to top Openness to Foreign Investment Egypt has experienced profound political changes over the past year. On February 11, 2011, President Hosni Mubarak’s 30-year rule came to an end under intense popular pressure as hundreds of thousands of Egyptians converged on Tahrir Square. Transition to democratic rule has been marked by advances and challenges. Egypt has seen several prime ministers and multiple cabinet changes since the revolution, and many investors have reported that the constant shuffle and interim tenure of government officials have contributed to a difficult business environment. Nonetheless, in January 2012 Egypt seated its first parliament elected in free and fair elections, and many of the members have identified increasing foreign investment as a top priority for the government. Egypt continues to honor its pre-revolution...
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...PROVIDING FOR THE 1989 CHARTER OF THE AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILIPPINES, AUTHORIZING ITS CONDUCT OF ISLAMIC BANKING BUSINESS, AND REPEALING FOR THIS PURPOSE PRESIDENTIAL DECREE NUMBERED TWO HUNDRED AND SIXTY-FOUR AS AMENDED BY PRESIDENTIAL DECREE NUMBERED FIVE HUNDRED AND FORTY-TWO (CREATING THE PHILIPPINE AMANAH BANK) Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:: WHEREAS, the State, in Section 20, Article II of the Constitution, encourages private enterprise and provides incentives to needed investments; WHEREAS, under the Constitution, the use of property bears a social function so that the consequences in law also must be defined by policy objectives related to property rights in productive enterprises; WHEREAS, toward this end, the Government has committed itself to the establishment of an Islamic bank that operates within a legal framework permitting the investors or participants the rights to equitable or beneficial share in the profits realized from financing productive activities and other operations: Now, therefore. THE CHARTER OF THE AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILIPPINES Section 1. Title. - This Act shall be known as "The Charter of the Al-Amanah Islamic Investment Bank of the Philippines." ESTABLISHMENT AND FUNCTIONS Section 2. Name, Domicile and Place of Business. - There is hereby created the Al-Amanah Islamic Investment Bank of the Philippines, which shall be hereinafter...
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...The foreign investment regime of the Peoples Republic of China has evolved considerably in recent years. With its rapidly expanding and potentially enormous market size, the consensus of international investors is that China is currently on of the most promising country’s in the world for foreign investment. Nevertheless, international investors have also pointed out that the current foreign investment regime in the Peoples Republic of China is far from being perfect. Despite its determination to pursue a market economy and comply with international practices, China remains a socialist state with planned economy influence and its government still emphasizes stability and control above all else. Pioneering foreign investors who have been operating in China during the past few decades have long been used to a highly non-transparent and especially in China a bureaucratic system that requires foreign investors to follow local laws and practices and navigate around numerous restrictions that only apply to foreigners. Complex approval processes, layers of government bureaucracy, high political pressure, together with inconsistent interpretation and enforcement of laws are phenomena that have long annoyed foreign investors in China. In 2001 China became a full member of the World Trade Organization. One of the first immediate effects of China’s entry was that, as a member of the World Trade Organization, China was obliged to open its domestic market further to foreign investors....
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...CHAPTER 1 INTRODUCTION 1.1. Objectives Sovereign Wealth Funds (SWF) is the terms that often made headlines for their deals, their investments, their transparency and sometimes the lack of it. They hold the people’s money, hence the scrutiny from public eyes. They also have more aggressive risk appetite than the usual reserve manager of a country which uphold the liquidity, security, and profitability principals and that results in an even more detailed scrutiny to the SWF. The term SWF itself has first mentioned by Rozanov in 2005 when he wrote for Central Banking Journal1, but actually SWF have been around since before that. For example Government of Singapore Investment Corporation and Temasek Holdings, the two prominent SWF from Singapore have already been established in 1981 and 1974, respectively. SWF’s asset under management amount is also increasing overtime. Preqin estimated that the growth of asset is up from USD 3.07 trillion in December 2008 to USD 6.3 trillion in March 2015 as seen in Figure 1.1 Sovereign Wealth Fund Assets under Management2. Norway’s Government Pension Fund currently has the biggest asset among them which is amounting to USD 882 billion3. It is interesting to see whether the smaller counterparts from Asia also enjoys the rise in their asset as well. The objectives of this paper is to comprehend and appreciate the dynamics of smaller SWF from emerging and developing Asia (IMF definition)4. 1 Rozanov, Andrew, 2005. Who holds...
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...industry, which focuses on early-stage, high-potential, start-up companies. The venture capital fund earns money by owning equity in the companies it invests in, which usually have a new technology or business in high technology industries, such as biotechnology and IT, however with high risk. Funds are typically established as limited partnerships, which is a contract between institutional investors who become limited partners and the fund manager. The basic intermediation structure of venture capital and private equity funds is graphically summarized in Figure 1. Figure.1 Venture Capital Financial Intermediation Venture capital is a specific form of industrial finance(part of a more widely based private equity market), which is a kind of investments with private equity made by institutions, firms and wealthy individuals in ventures that are not quoted on a stock market, and which have the potential to grow and become significant players on the international market. Venture capital will usually be regarded as an active and temporary (5 to 10 years) partner in the ventures in which they invest, and they are normally minority shareholders. They achieve their rate of returns mainly in the form of capital gain through exit rather than by means of dividend income. The venture capital market consists of different submarkets, which are institutional venture capital, corporate venture capital, and informal venture capital. The venture capital process can be simplified in Figure.2. Figure.1...
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...4.1 Geographic Environment Location Myanmar is located in Southeast Asia, bordered by India and Bangladesh in the northwest, China in the northeast, Laos in the east, Thailand in the east and southeast, and the Indian Ocean to the south and the west. Terrain Myanmar is bordered by China, Thailand, India, Laos and Bangladesh, its coastline along the Bay of Bengal and the Andaman Sea. Availability of natural resources Myanmar is rich in natural resources such as petroleum, timber, tin, antimony, zinc, copper, tungsten, lead, coal, some marble, limestone, precious stones, natural gas, and hydropower. Climate Myanmar has a tropical climate with three seasons: a cool winter from November to February, a hot season in March and April, and a rainy season from May through October. The average annual temperature is 28°C (82°F). Target geographic area Infrastructure construction is expected to have the fast growth, especially, in capial town like Yangon ,as the government of Myanmar is now concerning for infrastructure development to support the country’s economic growth. Myanmar is planning one more new hotel zone in Yangon, to cope with growing prospective visitors. It is expected to be constructed along with the project of the Hanthawaddy Airport. Furthermore, 2014 Asian Summit will be held in Myanmar, the demand for hotel and land has started rising in cities such as Yangon in preparation for supporting foreign investors and tourists to the country. These all...
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...EXERCISE #2 Doing Business with Mongolia Pulvera, Michael V. ECONOMIC ENVIRONMENT Over the past 20 years, Mongolia has transformed into a vibrant multiparty democracy with a booming economy. Mongolia is at the threshold of a major transformation driven by the exploitation of its vast mineral resources and the share of mining in GDP today stands at 20 percent, twice the ratio of a decade ago. The Mongolian economy is facing challenges from persistent economic imbalances. Economic growth slowed to 3.0 percent in the first half of 2015 amid declining exports from a continued weakening of the commodity market and slower growth in the key export market of China. Mongolia’s annual GDP growth is expected to slow to 2.3 percent for all of 2015. Poverty has been on a downward trend over the past decade. Most recently, Mongolia’s poverty rate declined from 27.4 percent in 2012 to 21.6 percent in 2014, although many remain near the poverty line. Substantial progress has also been made in regard to several Millennium Development Goals (MDGs) at the national level, though significant regional disparities prevail. To ensure sustainable and inclusive growth, Mongolia will need to strengthen institutional capacity to manage public revenues efficiently and limit the effects of Dutch Disease; allocate its resources effectively among spending, investing, and saving; reduce poverty; and offer equal opportunities to all its citizens in urban and rural areas. It needs to do this...
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...Executive Summary The Real Estate Investment in China is considered a growing business in the future. China being one of most populous place, people are seeking better living places. By seeing this investment opportunity in China, our group was highly interested. We believe that China has considerable amounts of land for this opportunity and our business to grow. Real Estate demand is raising in China since their economy continues to increase as well as people is becoming more wealthier. With our resources and experience in the field, our investment will be on its way. This report outlines the investment specifications. It is outlined in these categories: Country Analysis, Real Investment Analysis, Specific Components of the Project, the Best Mode of Entry, and the investment Risks Involved. Each outline analyzes the investment’s specific opportunity given the condition of the country. Based on this analysis, our group made a conclusion. A final recommendation of the proposed investment is given below. Country Analysis China is a developing country that has a great opportunity for foreign investors 5to establish their international business and make profits. China has a booming investment market and based on our research, the Livecast states that China’s investment environment is improving in recent years. Take an example from the Livecast, many enterprises transferred their business to China and trying to reduce the investment loss during the economic crisis in 2008...
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...Historically, in United States there were no rules, laws and guidelines put in place to protect investors and shareholders when investing. Then the stock market crashed, and congress passed laws to protect citizen’s investments in the united states. The standards were Security exchange commission (SEC), Generally accepted accounting principles (GAAP) which is the measure and standards are put in place to protect companies, stockholders and investors. These laws were put in place to make sure individuals were following these practices. During the 1920’s about 20 million stockholders took chances to make money off investing their money into the stock market. Once the stock market crashed in 1929, investors and banks lost most of their assets when the great depression occurred. Afterwards, in 1933 Congress passed a law which was the Securities Act that regulated the offer and sales of securities. Then the following year, congress enacted the Act of 1934 which was the Securities Exchange Act (SEC) this law was a secondary trading of...
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...All businesses have their own way of doing things. They all have their own strengths, weaknesses, structures, procedures, opportunities, and hindrances. At the end of the day, a business has to do what works for them. Our company is known as a comprehensive financial planning firm with a focus on the elderly population. We concentration on Tax, investment and Legal Planning with estate and elder law and elder care health issues. Our goal is to make sure our clients not only enjoy their retirement but stay in retirement. The company principals are to provide exceptional customer service with dignity to our clients. We provide this element of service by starting the relationship with our clients by focusing on what their life goals are. We feel that by helping better define their goals and what steps need to be taken to accomplish them, it brings purpose to their investments, assets and lifetime of hard work, which goes beyond just the idea of growing your money with no end in mind or purpose. We also strive to find creative ways to give back to our communities we live and work in. We feel it is our responsibility to give back to the communities that support us and assist the less fortunate. We have tried to focus a lot of our marketing towards giving to charities and helping our clients give towards causes that are close to their hearts. During the year we have chosen certain causes to donate towards as our clients will give us a referral or donate a percentage of sales...
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...The manager of Megabank, Judson Dillon, must make a decision on whether he should invest $65 million equities in HydroFruit Inc., a large tomato greenhouse in the remote area of Arizona. However, Hydrofruit Inc. is under suspicion of employing illegal immigrants. Objective and goal: The situation is a dilemma to Dillon because immigration is currently a sensitive issue in the United States. Although laws have been regulated to ensure that employers do not hire illegal laborers, many industries could not resist the huge benefits of this labor force, especially in the agriculture industry, which requires the seasonal workers. Dillon needs to evaluate the investment decision based on whether it is justified to hire undocumented workers in this industry. The short-term goal for Dillon is to make the best investment decision to avoid any litigation risk and protect the company’s reputation. In the long term, Dillon needs to increase the company’s profitability by 20% in the following fiscal year. Significance of problem: Legal concern and High potential risk Hydrofruit is located near the Mexican border, which is a great opportunity for the company to hire an abundance of the migrant workforce with low wage rate. The agriculture...
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...Doing business in Vietnam 2014 Page 1 of 52 Content Page Foreword Country profile Business etiquette and travel Key trends and statistics Regulatory environment Establishing a business in Vietnam Opening up to Foreign Investment Finance Business entities Labour Financial reporting and audit 3 4 8 13 17 20 23 24 26 30 33 “Welcome to our Doing Business Guide which we hope will assist you in navigating this exciting but sometime difficult environment” Ken Atkinson, Managing Partner, Grant Thornton Vietnam Grant Thornton xxxxxxxx Page 2 of 52 Foreword Vietnam is a unique country providing extensive opportunities for those willing to spend time to understand the market. Although not without its problems, Vietnam’s economy continues to expand and modernise, and with the opening up of previously restricted industries and sectors to meet WTO commitments; opportunities continue to develop. Grant Thornton Vietnam has prepared this guide to assist those interested in doing business in Vietnam. This guide does not cover the subject exhaustively. However, it is intended to answer some of the more important questions that may arise. When specific problems occur in practice, it will often be necessary to refer to the laws and regulations of Vietnam and to obtain the appropriate professional advice. This guide contains only brief notes and includes legislation in force as of 28 January 2013. We hope this guide helps you in learning about and understanding business in Vietnam...
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...The Debate Around NAFTA’s Chapter 11: The Case of MMT and Canada Introduction The North American Free Trade Agreement (NAFTA) is an agreement liberalizing trade and investment between Canada, the United States, and Mexico. From the moment it took effect on January 1, 1994, the agreement has sparked controversy and fiery debate from groups across the political spectrum regarding its benefits and costs.[i] Much of this debate revolves around Chapter 11, the section of the agreement that deals with investor-state relations. Chapter 11 gives foreign investors the right to sue the host government for damages if they believe they have been treated unfairly. In 1996, the Ethyl Corporation filed a $250 million claim against Canada under Chapter 11 regarding a gasoline additive they produced called MMT. Background • Methylcyclopentadienyl manganese tricarbonyl (MMT) MMT is an octane-improving fuel additive. The chemical compound was developed in the 1950s by what became the Ethyl Corporation (today part of the Afton Chemical Corporation, but hereinafter referred to as “Ethyl”).[ii] MMT was widely used in the United States and Canada, during the 1960s and 1970s in leaded gasoline. However, due to public health concerns, MMT was banned in the late 1970s by the U.S. Environmental Protection Agency (EPA).[iii] The health effects of exposure to manganese through its use in MMT are under research. Manganese, the main component of MMT, is a common element of our diets...
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