Paige is an extremely talented fashion designer. She comes up with an exciting design for a pink fluffy jacket. She approaches her friends Sarah and Nicola to see if they would be interested in forming a "fast fashion" business to exploit the jacket design she has come up with. Sarah is an experienced financial accountant and Nicola is a supply chain expert. Both Nicola and Sarah believe that they can make money from Paige's design idea and agree to go onto business with Paige.

What type of entity would you suggest that the trio use to undertake their business and why? (2 Marks)

1. Sarah and Paige want to adopt a constitution which provides that if shareholders want to transfer their shares, they first have to offer them to Nicola, 2. Paige and Sarah in equal amounts. How would such a constitutional modification be achieved, and would it be enforceable?

3. Sarah owns 30% of the shares of another company called Fluffy Pink Fabric Pty Ltd ("FPF"). PJR wants to purchase all its fabric from FPF. What would you advise Sarah?