Question: Koala Ltd is a large company that needs additional funds to supplement its working capital. It decides to issue additional shares to investors to raise
Koala Ltd is a large company that needs additional funds to supplement its working capital. It decides to issue additional shares to investors to raise those funds.
a)In which parts of the Corporations Act are the disclosure requirements for fundraising found?
b) Outline the five (5) main types of disclosure requirements under section 705 of the Corporations Act
c) Under the following scenarios, would Koala Ltd need to issue a disclosure document under Ch 6D of the Corporations Act? List the paragraph of the Corporations Act if Koala is exempt from disclosure
(A) Koala Ltd is raising $1.5 million over a 12-month period from five (5) investors.
(B) Koala Ltd is issuing 10 million shares at $1.50 each to the public with no minimum subscription amount.
(C) Koala Ltd is issuing 10 million shares at $1.50 each to the public with a minimum subscription amount of $750 000.
(D) Koala Ltd is issuing $100 million in debentures to several very large banks located in Australia.
(E) Koala Ltd is issuing 10 million shares at $1.50 each to Wombat Ltd's managing director, chief financial officer and their respective spouses.
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