Alex and Brenda are the directors and equal shareholders of AB Web Designs Pty Ltd (ABWD).They want to expand their successful web design business, and they are exploring several ways to achieve their goal.After giving a lot of thought, they conclude that they need to raise funds to buy more spacious premises, powerful computers, outdoor photo-video production equipment, and new editing software licenses.They meet Cash, who is a retired airline captain and is looking for a profitable business in which to invest for a 10 per cent return.After a business meeting between them, Cash comes to you for advice on

a. the legal advantages and disadvantages if he were to subscribe shares in ABWD rather than lending the money;

b. whether he should subscribe ordinary, preference, fully-paid, partly-paid, cumulative, or non-cumulative shares;

c. if he were to lend them the money and charge them interest instead, what kind of arrangement could he negotiate to maximise the chance of recovering his money in case of ABWD underperforming or defaulting on the loan;

d. the order of priority with respect to other creditors in the event of ABWD's winding up; and

e. the rights he might enjoy if he subscribes shares or lends the money and, in each case, suffered oppression as a minority shareholder, or tried to avoid a contravention of the Corporations Act that negatively affects his interests as a creditor.