Jet Ltd is the owner of an Australian domestic airline. The Australian travel market is very competitive. The management of Jet Ltd is concerned about the plans of a rival airline company that intends to expand its Australian domestic operations. The board of directors of Jet Ltd decides to revamp its fleet of aircraft and to purchase extra planes, but the company does not have the capital. Jet Ltd wishes to induce each investor to invest $10,000 with the company in exchange for shares in the company. The company aims to raise between $9 million and $11 million in new funds. The company has approached you for advice. Your Task: (a) Advise Jet Ltd of its fundraising obligations under the Corporations Act, paying particular attention to the specified facts. (6 marks) Refer to the facts above. Assume Jet Ltd has issued shares and has lodged a prospectus with ASIC. The prospectus contains a totally unrealistic profit forecast made by the directors and supported by a quote from an independent industry expert. Jet Ltd's expansion was a disaster because market demand for domestic travel slumped unexpectedly soon after the prospectus timeframes closed. Your Task: (b) The investors have commenced legal action on the basis that the profit forecast statements in the prospectus were misleading or deceptive. Assuming this to be the case, advise the following parties on their respective rights and liabilities: (9 marks) 1) The investors of Jet Ltd; 2) Jet Ltd; 3) Jet Ltd's directors. 2020 Business Organisations Give reasons for your answers, referring to the Corporations Act 2001 (Cth) and/or cases, as relevant, to support your arguments.