QUESTION 1

What is the aim of the disclosure obligation provisions in Ch 6D of the Corporations Act?

1. To achieve a fair and well-informed market
2. To assist investors in identifying reasonably anticipated risks associated with the company
3. To promote cost-effective access to information
4. All of the above

1 points

QUESTION 2

Select the correct answer. A public company does not need to issue a disclosure document when issuing securities to the general public, if:

1. a personal offer is made and is targeting a maximum of 20 investors
2. an offer is made that is targeting a person, who a qualified accountant certifies has a net asset value of $1.5 million
3. an offer is made to a senior manager of a related company
4. all of the above

1 points

QUESTION 3

Which one of the following statement(s) is incorrect about prospectus offerings?

1. An offer of securities, which is not supported by the lodgement of disclosure documents with ASIC, is not an offence but may be subject to an interim stop order by ASIC.
2. Information, which is based on mere matters of opinion, for example, is not perceived to be relevant to the audience of the prospective financial information, as it is not considered to be materially reliable.
3. Where there has been an alleged defective disclosure, an investor may bring a claim for 'misleading statement' or 'material omission or failure to include a new matter in the disclosure documents' against the directors of the company, even where those directors have not taken up office, providing they consented to being listed in the disclosure documents.
4. A defendant may avoid civil and criminal liability for providing defective disclosure documents, if they prove that they made all inquiries that were reasonable in the circumstances.

1 points

QUESTION 4

A debenture is:

1. only defined under the statute. The common law does not provide a definition of this term. The statute considers that a debenture is a chose in action that includes an undertaking by a body to repay, as a debt, money deposited with or lent with the body
2. defined under statute and common law. The definition under the statute has expanded the definition of debenture to mean a chose in action that includes an undertaking by a body to repay, as a debt, money deposited with or lent with the body
3. defined under the statute and the common law. However the definition under statute is narrower than the one under the common law. Under the statute, a debenture is a document issued by a company to identify a debt
4. only defined under the common law. The statute does not provide a definition of this term. The common law considers that a debenture means a chose in action that includes an undertaking by a body to repay, as a debt, money deposited with or lent with the body

1 points

QUESTION 5

As well as the term 'debenture', under s 283BH(1) of the Corporations Act what other terms may be used by borrowers in a prospectus or other document inviting loans, to ensure investors know they are investing in debentures?

1. A mortgage debenture
2. An unsecured note
3. An unsecured deposit note
4. . All of the answers are correct

1 points

QUESTION 6

Section 283AC requires the trustee to be one of the following:

1. an Australian authorised deposit-taking institution (ADI)
2. any individual of good character
3. a registered company auditor
4. All of the answers are correct

1 points

QUESTION 7

Which of the following is a type of transaction that is covered by the PPSA:

1. rights of set-off or netting
2. the interest of a consignor, who delivers goods to a consignee under a commercial consignment
3. security interests over fixtures
4. All of the answers are correct

1 points

QUESTION 8

Which of the following statements is incorrect?

1. The PPSA alters the system for recognising and enforcing security devices
2. The PPSA introduces a new single regime to govern security interest
3. The PPSA covers all people taking or giving security over all kinds of personal property
4. The PPSA is aimed to reduce complexities and confusion surrounding security devices

1 points

QUESTION 9

Shares have significant features such as, they are:

1. transferable (can be bought and sold)
2. capable of use as security
3. capable of devolution by will
4. All of the above

1 points

QUESTION 10

Which one of the following does not constitute financial assistance provided by a company to acquire its shares?

1. A director purchasing shares
2. a company giving a loan to a director to purchase shares
3. a company releasing a debt owed by director to the company to allow the director to purchase shares in the company
4. a company making a gift to a director to purchase shares