Cool Cat Ltd is an Australian company that manufactures air conditioners. The market in which Cool Cat Ltd operates is very competitive. The board of directors therefore decide to raise $12 million to research new technologies to improve Cool Cat Ltd's market share.

Clause 6 of Cool Cat Ltd's constitution gives holders of 'Class C shares' double voting rights in members' meetings. The directors wish to have clause 6 removed from the constitution with the effect that holders of all shares would have one vote per share. Caesar who owns 50% of class C shares objects to the removal of clause 6.

REQUIRED:

With reference to the Corporations Act 2001 (Cth) discuss the various methods available to Cool Cat Ltd to raise $12 million by way of a new share issue. Explain whether and how the company may be able to raise this amount of money without preparing a full prospectus.

Note: You are required to use the 4-step process in answering this question. The marks allocated for the steps are as follows:

Steps 1 and 2: 4 marks

Steps 3 and 4: 6 marks