The objective of this paper derives from a fictional situation set in an airline company in New Zealand. By attempting a review and application of Australia’s company laws, it seeks to advise the Australian Pilots Association on all legal matters related to the issue at hand. The paper first attempts a review of the Corporations Act 2001, which is significant throughout the Commonwealth. The legislative domain of this paper would be incomplete without a perusal of the Fair Work Act 2009. The limitations offered by these legislations in the context of the complexity of the case will be examined and elucidated with the aid of Company Law precedents in Australia. A plausible legal recourse will then be presented citing options offered by both legislative and judicial instruments discussed.
The provisions of the Corporations Act 2001 are very significant in analysing this case. The Act was historically the first of its kind to elucidate on the directive principles of the relationships between employers and employees. In addition to this, insolvency as a vicarious liability has been a prominent aspect of Australian jurisprudence, owing to the non-restrictive nature of its legislations and judicial precedents.
The party to the case that is being advised in this paper is the Australian Pilots Association, which safeguards the rights of its members. These rights derive from the responsibility of the enterprise towards its members, the question being which of the two business entities mentioned in the case history can be considered the enterprise. The Corporations Act of 2001 was thus, instrumental in eliminating the inherent ambiguity of insolvency legislation.