Question
QUESITON 6 Ginko Ltd needs to raise $10million to purchase machinery. The directors propose to issue debenture stock to the public. To do this, the
QUESITON 6
Ginko Ltd needs to raise $10million to purchase machinery. The directors propose to issue debenture stock to the public. To do this, the company will be required to prepare and provide a prospectus.
With reference to the Corporations Act discuss:
- Whether the directors have to insert information in the prospectus that the company is being sued by the Taxation office for non-payment of taxation?
- Who is liable to investors if the prospectus has a mistake in it or omits material information? Are there any defences available?
- Are there any alternatives available if the directors do not want to issue a prospectus?
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Core concepts of accounting information systems
Authors: Jacob M. Rose, Mark G. Simkin, Carolyn Strand Norman
13th edition
978-1-119-0332, 1118742931, 978-1118742938
