Goodtimes Ltd has had a very successful trading period. The directors decide that the profits should be used to offer to purchase back some of their shares held by the members. The directors wish to undertake two transactions:

1. Purchase 12% of the ordinary shares held by Jasline

2. Offer all shareholders the opportunity to sell 8% of their ordinary shares to company.

3. Six months after the offer to all shareholders (in point 2 above), an offer to all shareholders to sell another 5% of their ordinary shares to the company.

REQUIRED: (a) In terms of s256 A, describe the obligations of the directors in terms of whether the Corporations Act allows the directors to undertake their plans (3 marks)

(b) Name the type of buy-back relevant to each of the above and briefly detail the procedures to be followed (3 marks for each = total 9 marks).