Question
Humphrey Singh is the senior partner/managing director of the firm. He is partner/managing director responsible for the provision of advice and services to the client
Humphrey Singh is the senior partner/managing director of the firm. He is partner/managing director responsible for the provision of advice and services to the client BMW Ltd. They are a valued client of the firm.
He is currently in Western Australia on business and will not be back until Monday 8 May 2023.
He has read the report prepared by you and reviewed by Serena.
ISSUES THAT HUMPHREY WANTS YOU TO ADDRESS:
1. Given the financial markets are in turmoil and the share price of BMW has fallen dramatically from $2.05 to .20c per share is it likely that the public will take up a share issue?
2. Is a preference share issue a better option?
3. The company received a letter from a solicitor 5 days ago stating that a consumer suffered a severe and fatal reaction to one of the products on the basis the product contained toxins and not natural products as claimed. Who is liable, the company or the senior management?
4. The recent case of Cassimatis v ASIC [2020] FCAFC 52 involved the application of s180 of the Corporations Act by the Full Federal Court. Can you explain why the court came to the view the directors breached s180 of the Corporations Act. Does it apply to the directors of BMW?
5. KM has a financial planning division which has many high-net-worth clients each with funds in excess of $3,000,000. Would it be easier for BMW to ask these clients to invest than asking the public?What does the company have to do?
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