Course Title: Apply legal principles in corporations and trust law

Part B: Course Detail

Teaching Period: Term2 2016

Course Code: BAFI5223C

Course Title: Apply legal principles in corporations and trust law

School: 650T Vocational Business Education

Campus: City Campus

Program: C6148 - Advanced Diploma of Accounting

Course Contact: Ben Sethia

Course Contact Phone: +61 3 9925 5982

Course Contact Email:

Name and Contact Details of All Other Relevant Staff


Nominal Hours: 60

Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Pre-requisites and Co-requisites


Course Description

This unit describes the skills and knowledge required to research and analyse legal principles and issues in corporations and trust law matters and then apply this knowledge to provide advice to clients.

It applies to individuals who work with corporations and trust laws in the workplace as determined by the job role, legislation, rules, regulations and codes of practice relevant to different jurisdictions.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. This unit is designed to meet educational requirements of the Tax Practitioner Board (TPB). Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.

National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSTPB504 Apply legal principles in corporations and trust law


1. Research legal aspects of corporations and trust law relevant to client's circumstances

Performance Criteria:

1.1 Identify client circumstances that require advice on corporation and trust law matters

1.2 Research corporations and trust law and related legislation, regulation and practice

1.3 Identify different types of relevant corporations and trust law transactions, and clearly outline their legal context, establishment procedures and purpose

1.4 Identify legal principles applying to corporation and trust matters that are relevant to client circumstances


2. Analyse issues and risks associated with operation of a business

Performance Criteria:

2.1 Identify areas of risk in application of law in corporation and trust matters

2.2 Analyse how legal issues impact on different types of legal entities

2.3 Evaluate relevance to client circumstances and implication of risks for structure, operation and performance of different types of legal entities

2.4 Assess ways in which risk mitigation is addressed in formation and operation of different types of legal entities


3. Apply knowledge of law to business structures

Performance Criteria:

3.1 Collect and collate client's business information for analysis

3.2 Interpret, analyse and process available information to obtain required knowledge on client's business structure requirements

3.3 Seek advice and guidance of specialist where required, to interpret, analyse and synthesise client's relevant information

3.4 Provide advice to client based on identified facts and relevant laws


4. Maintain legal knowledge

Performance Criteria:

4.1 Review client's circumstances and business structure, and apply any changes in relevant aspects of corporations and/or trust law if necessary

4.2 Access and use systems for maintaining up-to-date knowledge about relevant legal aspects of corporations and trust law

4.3 Review relevant legal sources regularly and apply any changes in daily work

Learning Outcomes

Details of Learning Activities


In this clustered/co-delivered, holistic course comprising two units and using the textbooks and other materials, students will be progressively introduced to skills and knowledge required to research corporate governance reporting trends, examine corporate governance standards and practices, and review compliance to develop and implement processes and procedures for meeting corporate governance obligations. They will also develop skills and knowledge required to apply legal priniples in corporations and trusts law matters. With respect to the full-time students, in-class activities will account for some of the nominal hours allocated to this course and will include a range of self-paced and collaborative learning activities such as class discussion, completion and review of set exercises and work, tests, team presentation and a comprehensive assignments in which parts involve a simulated/real workplace environment.

The collaborative classroom based activities will include group discussion, group problem solving activities and opportunities to practice your skills in a simulated / real workplace environment.

The hours of self-directed/self-paced learning by students will be taken up with reading, research, set work on exercises and the completion of the assignment outside scheduled class time. Please note that the format of the classes will in total, three hours per week. The learning activities described above will be covered in these classes and we expect you to participate and contribute in all scheduled learning activities..

Teaching Schedule



Please note that this course is clustered/co-delivered holistically as a group of two courses those being, ACCT 5386C - Monitor Corporate Governance Activities and BAFI5223C Apply legal principles in corporations and trusts law. As a result, other than the elements and the critical aspects specific to this course, the two course guides will depict the same information.

The teaching schedule for this course is as follows:

Induction Session

Prior to training commencement a program level induction session will be conducted that comprises the following:
• Program overview and requirements
• MyRMIT/Blackboard
• Overview of assessment requirements
• Pre-Training Review including:
- Recognition of Prior Learning and Credit Transfers
- Assessment of current skills and knowledge
• Competency/Grading Criteria
• Plagiarism
• Appeals
• Extensions
• Feedback
• Privacy
• Submission requirements




Week Commencing

Topics & Activities               



4 July 2016


  • Program overview and requirements
• MyRMIT/Blackboard
• Overview of assessment requirements
• Pre-Training Review including:
- Recognition of Prior Learning and Credit Transfers
- Assessment of current skills and knowledge
• Competency/Grading Criteria
• Plagiarism
• Appeals
• Extensions
• Feedback
• Privacy
• Submission requirements
• Resubmission policy
• Where to get support
• Student responsibilities    

     Corporate Governance Introduction

Definition of Corporate Governance

Need for Good Corporate Governance

Corporate Collapses
Corporate Governance Structures in Australia

Corporate Governance Regulators

Good Corporate Governance Standards



11 July 2016

Corporate Ethics


Importance of Ethics
Ethical Professional Self Regulation

Company Code of Conduct



18 July 2016

Internal Controls, Risk & Compliance

Internal Control Systems Definition
The Control environment
Types of Internal Controls
Risk definition
Types of Risk

Risk Management
Governance, Risk & Compliance



 25 July 2016

 ASX Guidelines for Listed Companies

The role of the ASX

ASX Corporate Governance Council

Corporate Governance Principles and Recommendations



 1 August 2016

 Choosing a Business Structure

Types of Business Structures

Advantages / Disadvantages of Business Structures

Complete and submit on-line test 1

Team presentation assignment available to students


8 August 2016

 The Company

The Corporations Act 2001

Separate Legal Entity
Shareholders and Limited Liability
Classification of Companies
Company Obligations
Promoters and Pre-incorporation Contracts

Final Assignment available to students


 15 August 2016


Division of Power within a Company

Types of Directors

How Directors are appointed

Resignation and removal from Office
Appointment of Company Secretary

Remuneration of Directors




 22 August 2016

 Directors’ Duties

Fiduciary Duties

Statutory Duties

The insolvent trading rule



 29 August – 2 September 2016




 5 September 2016

 Share Capital & Fundraising

Financial resources of a Company

Classes of Shares

Issuing Shares

Retention of Capital
Share Buy-Backs

Going Public



 12 August 2016

 External Administration of Companies

Voluntary Administration


Winding Up or Liquidation



 19 August 2016

 Unincorporated Associations

Incorporated Associations



Advantages and Disadvantages of Incorporation



26 September 2016


 Legislation / Compliance Team Presentations Assessment


 3 October 2016


Elements of a Trust
Types of Trusts

Continuity of Existence

Winding up Trusts



10 October 2016

 Accounts, Reporting & Auditing

Corporate Reporting


Financial Reporting

Directors’ Report

Continuous Disclosure

Main function of an Audit
Appointment and Removal Duties and responsibilities of an Auditor



17 October 2016

 Environmentally Sustainable Work Practices

Sustainability Policies and Legislation
Developing Strategies and Implementing Change

On-Line submission of Final Assignment


24 October 2016




Learning Resources

Prescribed Texts

Monitor Corporate Governance Activities - Mathew Fawcett


Other Resources

Overview of Assessment

In order to achieve competency in this unit, you must provide:

Performance Evidence

 Evidence of the ability to:

◾research changes to, or new, legislative requirements in relation to corporations and trust law relevant to the client’s circumstances and business structure requirements
◾apply current statute, common law and equitable principles in relation to corporations and trust law relevant to the client’s circumstances
◾present a recommendation on suitable business structures or legal entities to the client after considering the client’s circumstances

Knowledge Evidence

To complete the unit requirements safely and effectively, you must:

◾describe the operation of the Australian legal systems and processes relevant to corporations and trust law including:

  • basic principles, current statute, common law and equitable principles
  • roles and responsibilities of key organisations
  • constitutional considerations
  • separation of powers
  • basic principles of the law of torts, particularly relating to negligence and negligent misstatement
  • courts and regulatory bodies

◾outline how laws are enacted and their underlying policy aims
◾explain how those laws may be interpreted by existing common law and equitable rules and applied to corporations and trusts
◾analyse legal concepts of business organisational structures, and underlying regulation including the application of these to:

  • sole traders
  • partnerships
  • corporations
  • trusts
  • agencies
  • joint ventures
  • incorporated associations

◾examine legal aspects of superannuation with reference to:

  • ways in which superannuation can be accumulated and taken
  • who can provide superannuation products and how those providers and their products are prudentially licensed and regulated
  • duties of superannuation trustees
  • how superannuation interests are protected and litigated
  • current and future developments in superannuation law and policy

◾identify and reference the key features of Australian corporations law and requirements to analyse issues and risks relating to:

  • nature of a company
  • company registration
  • promoters and pre-registration contracts
  • company constitution and replaceable rules
  • contracting with others
  • fundraising
  • share capital
  • member meetings
  • corporate management
  • directors’ duties
  • member remedies
  • bankruptcy and insolvency

◾examine legal concepts and scope of law covering trusts with particular reference to:

  • structure of a trust
  • trust deed
  • common law duty
  • role and responsibilities of a trustee
  • types of trusts
  • member meetings
  • corporate management
  • member remediation
  • bankruptcy and insolvency

Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the tax and legal fields of work and include access to:

  • office equipment, technology, software and consumables
  • relevant legislation, regulations and codes of practice

You are advised that you are likely to be asked to personally demonstrate your assessment work to your teacher to ensure that the relevant competency standards are being met.


Feedback will be provided throughout the semester in class and/or online discussions.  You are encouraged to ask and answer questions during class time and online sessions so that you can obtain feedback on your understanding of the concepts and issues being discussed. Finally, you can email or arrange an appointment with your teacher to gain more feedback on your progress.

You should take note of all feedback received and use this information to improve your learning outcomes and final performance in the course.

Assessment Tasks

Overview of Assessment



Assessment may incorporate a variety of methods including technical requirements documentation, homework, assignments, group and/or individual projects, in class exercises, written and practical tests, problem solving exercises, presentations, direct observation of actual and simulated work practice, presentation of a portfolio of evidence which may comprise documents, and/or photographs and/or video and audio files, review of products produced through work-based or course activities.

Students are advised that they are likely to be asked to personally demonstrate their assessment work to their teacher to ensure that the relevant competency standards are being met. Students will be provided with feedback throughout the course to check their progress

Assessment Tasks

Please note that this course is clustered/co-delivered and co-assessed holistically as a group of two courses those being, ACCT 5316C - Monitor Corporate Governance Activities and BAFI5205C Apply legal principles in corporations and trusts law. As a result, other than the elements and the critical aspects specific to this course, the two course guides will depict the same information.

Critical aspects of assessment:

Evidence of the following is essential:

  •  access and accurately interpret statutory and regulatory authority regulations and requirements
  • apply professional accounting standards and meet organisational policies and procedures
  • research corporate governance reporting trends
  • determine processes for corporate governance adherence
  • examine and review corporate governance standards and practices
  • demonstrate knowledge and understanding of the corporations and trusts law such that current statute, common law and equitable principles can be applied, to particular fact circumstances in order to provide advice
  • draw conclusion having regard to the facts and relevant law
  • access information on relevant legislation, statutes, regulation and legal judgements.

Assessment Tasks:

You are required to complete the following:

1. Presentation (40%)

A practical case study will be provided to students. In teams of 2 , the students will be allocated a legislation topic for them to research and identify compliance shortcomings in the case study. The teams will present their recommendations and research to the class. A hard copy of the presentation (Powerpoint) will need to be handed to your instructor and a copy to be submitted online via Blackboard. To be successful in this unit of competency a student must be able to demonstrate competency in the required task.

2. 1 On-Line test (10%)

The test will incorporate multiple choice and true/false questions covering Corporate Governance. It will be an on-line test (available in Blackboard) scheduled in week 5 . This test will be a competency based assessment with a Competent (CA) grade required. Students will have multiple attempts to achieve a CA grade. However more than one attempt will limit the student to a CA-Ent grade only.

Your teacher will discuss the assessment matrix for each assessment with the class at the beginning of the semester and prior to the assessment taking place. Each student will also receive this document completed by the teacher a the feedback with regard to performance in each assessment.

3. Assignment(50%)

Students will be allocated a series of major assignment question to be completed and submitted on-line by week 15. The questions will be a simulated work place scenarios that the students will need to carefully plan and address all relevant issues. The student must present their answers in the form of a business report as though providing advice to accounting or business clients. This assignment is used to determine competency. To be successful in this unit of competency a student must be able to demonstrate competency in the required tasks as outlined by the assignment


Assessment Matrix

Other Information

Submission Requirements


You should:

• Ensure that you submit assessments on or before the due date.
• Always retain a copy of your assessment tasks. (hard copy and soft copy)
• When you submit work for assessment at RMIT University you need to use a cover sheet that includes a
declaration and statement of authorship. You must complete, sign and submit a cover sheet with all work
you submit for assessment, whether individual or group work. On the cover sheet you declare that the
work you are presenting for assessment is your own work. An assignment cover sheet for submission of
each assessment task is available on blackboard.
• Each page of your assessment should include footer with your name, student number, the title of the
assessment, unit code and title and page numbers. For example, Colin Byron, 324567, Task 2,
OHTH5844C Ensure safe workplace, Page 1 of 10.

Marking Guide (competency):

Vocational Education and Training (VET) is based on current industry needs and the focus on preparing you for the workplace. Because VET courses are informed by practical application of knowledge and skills, they are based on a system known as ‘competency based training’ (CBT). So when you are assessed in VET it is about whether you are competent to do the job, as well as having a firm grasp on the knowledge and skills required to do that job, as opposed to traditional curriculum based education settings that are often based on knowledge retention.
You need to demonstrate you are competent in each element of the unit of competency you are studying.
You will receive feedback on each assessment task that will inform you whether you are competent or not and how well you are performing. Once competent in all elements of the unit you receive a competency grading.
Please refer to the Final Grades table below.

Marking Guide (Grading)

After achieving competency we then grade your performance in the unit; this gives you the opportunity to have the level of your performance formally recognized against industry standards and employability skills.
The grading is according to the following criteria:
We are looking for a high level of ability to complete all tasks independently as well as demonstrating a high level of initiative while proccessing transactions and extracting reports.
We are looking for depth of understanding of the key concepts and knowledge required in processing financial transactions. You should be able to demonstrate a thorough understanding of double entry bookkeeping principles and procedures involved when processing financial transactions and preparing reports.
We are looking for techniques to be used in problem solving, using appropriate technology and methodology to assist in recording data and preparing reports. You also need to show an understanding of the kinds of problems that can arise in bookkeeping and reporting.
We expect to see effective planning, self management & work organization resulting in timely submission of all required assessment tasks
We expect to see contributions to relevant discussions. In addition you should demonstrate a range of well-developed interpersonal skills appropriate to each task
Final Grades table:
CHD Competent with High Distinction
CDI Competent with Distinction
CC Competent with Credit
CAG Competency Achieved – Graded
NYC Not Yet Competent
DNS Did Not Submit for assessment
Further information regarding the application of the grading criteria will be provided by your teacher.

Late Submission Procedures

You are required to submit assessment items and/or ensure performance based assessment is completed by
the due dates.
If you are prevented from submitting an assessment item on time, by circumstances outside your control, you
may apply in advance to your teacher for an extension to the due date of up to seven calendar days.
More Information:
Form to use:
Where an extension of greater than seven days is needed, you must apply for special consideration.
Applications for special consideration must be submitted no later than two working days after the assessment
task deadline or scheduled examination. <check links are still current>
More Information:;ID=g43abm17hc9w
Form to use:

Resubmissions (VET Programs):

If you are found to be unsuccessful in a Course Assessment Task you will be allowed one resubmission only.
Your teacher will provide feedback regarding what you need to do to improve and will set a new deadline for
the resubmission. The highest grade you will receive if your resubmission is successful is “CAG”.
If you are still not meeting the assessment requirements you must apply to your Program Manager in
writing outlining the steps you will take to demonstrate competence in your course. Your submission will be
considered by the Program Team and you will be advised of the outcome as soon as possible.

Adjustments to Assessment

In certain circumstances students may be eligible for an assessment adjustment. For more information about
the circumstances under which the assessment arrangements might be granted please access the following
More Information:;ID=7usdbki1fjf31Resubmissions (VET Programs):

Course Overview: Access Course Overview