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?

(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?

(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?

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