Australian Law

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. REQUIRED:

(a) Can the funds be raised without a prospectus? (2 marks)

(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? (1 mark)

(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? (2 marks)

(d) Does the CA provide any protection for directors where funds are raised under a prospectus that contains a misleading statement? (1 mark).