Question 4. Corporate Finance (10 marks).

Marcus and Stephen had been operating a successful partnership developing software for Australian freight and logistics firms. Eighteen months ago, they decided to form a limited company (IFAL Ltd) and list it on the AX. As consideration for the licensing of their software to the listed company Marcus and Stephen received a substantial block of shares in IFAL. The company has been steadily expanding and at a recent board meeting the directors of IFAL Ltd were discussing raising $30 million to fund expansion of the business into Asia.

The following fundraising options were discussed:

offering additional shares to existing shareholders

offering shares to past and present employees of the business

offering $30 million worth of shares to Northern Insurance Limited

Your Task:

1. Advise the directors of IFAL Ltd the type of disclosure documents (if any) required to be prepared in accordance with the Corporations Act

2001 (Cth) in relation to the three proposed offers.