You have been asked to write an article outlining the corporate governance implications of the Centro case for publication in the Business Section of a national newspaper. Please search business and legal publications to find out the facts of the case. However, be sure to use your own words and acknowledge the sources of your information. You will be rewarded for researching widely. Remember that while you are writing for an informed section of the public it is important to keep the legal jargon to a minimum.
1. Outline the facts of the Centro (ASIC v. Healy) case and explain why ASIC took action against the six Centro non-executive directors. In your answer briefly discuss the role and responsibilities of nonexecutive directors. (1000 word maximum)
2. Discuss the implications that failing to recognise such a massive amount of short-term debt may have on the existing and future investors of Centro.
3. Using a stakeholder theoretical framework discuss Justice Middleton's ruling (14) and Milton Friedman's concepts of corporate social responsibility.