PGDL COMPANY LAW ASSESSMENT May 2022 ADVANCE RELEASE INFORMATION Jay Jay Fashions Ltd Contents Page History Management Shareholders Strategy WW ww N NN Company information Employees FinanceHistory In 2016 Jimmy Lin and Jessie Roberts incorporated JayJay Fashions Lid ('JayJay) in order to launch a clothing line for children from premises in Manchester. Through a combination of social media marketing and a loyal customer base, the business has been very profitable. Jimmy and Jessie are the directors and shareholders of JayJay. There is another shareholder, Jessie's father, Ben Roberts. Ben is a successful restauranteur. Ben and Jimmy provided the initial investment to enable Jimmy and Jessie to start the business. JayJay has an issued share capital of E 150,000. There is no shareholders' agreement. JayJay has an overdraft facility with Pacific Bank. The company needs to raise $ 100,000 to fund a planned expansion. Management Jimmy Lin, CEO and Marketing director Jimmy has a degree in fashion. He worked in well-known fashion houses before founding the business with Jessie Jessie Roberts, Operations and Finance director Jessie has a degree in product design. Dressmaking has always been a hobby and she had been selling her designs online before she started JayJay with Jimmy. Shareholders (Issued share capital of 150,000 ordinary shares of $1 each) Shareholder % holding Number of shares Ben Roberts 40% 60,000 Jimmy Lin 40% 60.000 Jessie Roberts 20% 30,000 2Strategy JayJay has, until now, been trading online and through a local shop in South Manchester. Due to the success of the business, Jimmy and Jessie would like to open a second, larger shop and to increase their production capacity for the business. They have identified some suitable premises which incorporates a workshop in Manchester's commercial centre, but they will need to completely refurbish these premises JayJay will need to raise f 100,000 for the refurbishment and for the purpose of buying machinery for the workshop. Jimmy and Jessie have had discussions with Western Bank about obtaining a term loan for this amount. Jimmy and Jessie have also spoken to a potential investor, Asha Patel, about buying shares in JayJay for E100,000. They are now considering whether the use of equity or debt finance would be more beneficial for Jay Jay. Company information Registered Office address 63 Ash Road, Manchester M19 9LF Registered number 531923 Accounting reference date 31 March Articles JayJay has adopted the Model Articles for Private Companies with no amendments. Employees JayJay has 15 permanent employees. Finance The company has an overdraft facility of E3,000 with Pacific Bank. 3