Corporations Law

5. Albert is the managing director of Retail Pty. Ltd. He advises that the company is trading protably, but is in need of further capital for expansion. He asks you whether it would be in order to place notices in several of the local shop windows, inviting people who might be interested in a sound investment, to apply to the company's secretary for shares in the company. Advise. Share Capital 6. (a) What is the nature of a share? (s10?0A) (b) What is the contractual analysis the purchase of a share? 7. Is it correct to say that uncalled capital is an asset of the company and can a company borrow against its uncalled capital? 8. Broadly, what rights does a person acquire when they become a shareholder in a company? Why may a company wish to have different classes of shares? 9. Explain the rights attaching to the following types of shares: ordinary shares; preference shares; cumulative preference shares; participating preference shares; redeemable preference shares ;( s254A (2) (3) 10. In what ways do shareholders differ from debenture holders? In what ways are dividends to be distinguished from interest payments? 11. What restrictions, if any, are imposed on the alteration of class rights in respect of shares? (s246BD)