Reference no: EM132767280

MFS Ltd was a publicly listed company and was the parent company of the MFS Group. MFS Ltd collapsed in 2008 during the Global Financial Crisis (GFC) with substantial debts. Following the collapse, ASIC commenced civil penalty proceedings against a number of directors and officers of the group, including Mr Michael King in connection with large scale misuse of funds. The relevant entity at the heart of ASIC's case was MFS Investment Management Pty Ltd (MFSIM). MFSIM was the Responsible Entity of the Premium Income Fund (PIF), the largest registered managed investment scheme in the MFS Group.

• The Supreme Court found that MFSIM, Mr King and other senior officers within the MFS group had contravened numerous provisions of the Corporations Act in connection with the misuse of MFSIM's funds. The Court of Appeal overturned the ruling of the trial judge on the question of whether Mr King was an officer of MFSIM.

Problem 1: Provide four (4) brief comments on the significance of the ASIC v King decision from the perspective of a company?