Students must use a Times New Roman 12 size font, double spacing and default Microsoft Word margins.
law
Description
Students must use a Times New Roman 12 size font, double spacing and default Microsoft Word margins.
You do not need to use referencing but you must use your own words.
You must properly analyze each question before commencing your answer. Restrict your answer
to what is relevant and most important. The marks allocated to a question will influence how much
of your knowledge of a topic you should treat as relevant. For instance, if a question is worth 10
marks then you are expected to write about ¾ of a page to one page.
In order to obtain the funds necessary to expand its business Growth Ltd is to make a $12M share issue.
Advise the directors of Growth Ltd over the following matters.
Hint: The best practice questions to use from workshops come from workshop 5.
(a) Can the funds be raised without a prospectus?
(b) If a prospectus is prepared, will the directors be safe from prosecution if they provide to investors in everything they know that is relevant about the investment?
(c) If the company issues a prospectus and the directors then become aware that there is a false and misleading statement in it, what alternatives are available to them under the CA?
(d) Does the CA provide any protection for directors where funds are raised under a prospectus
that contains a misleading statement? (1 mark).
