LAW 2629

SINGAPORE COMPANY AND FINANCE LAW

ASSESSMENT 2

The video:

Brandon Chiew is the senior partner/managing director of the firm. He is responsible for the provision of advice and services to the client Multicoin Pte Ltd. They are a valued client of the firm.

He is currently in Thailand on business and will not be back until Monday 12 September 2022

He wants you to prepare a 5 minute video explaining to him the following issues.

Rationale for video presentation:

As accountants/financial advisers you will spend the majority of your time explaining issues to people. The purpose of the video is to give you the opportunity in a safe environment to develop that skill.

The questions that you will be required to answer may take more than 5 minutes to respond so you will need to develop the skill to summarise.

ISSUES THAT BRANDON WANTS YOU TO ADDRESS AND PRESENT IN THE VIDEO:

1. Stephen has been a director of two other companies in the last 7 years that were insolvent. Can he still be a director?
2. Given the financial markets are in turmoil and share prices are falling is the 30% discount for the rights issue enough of a buffer?
3. What is a renounceable and non renounceable rights issue and which would be better for the client?
4. Would debt funding be a better option?

In your video presentation please answer these questions from Brandon.