Question Three:

Larry started a clothing business several years ago called Larry's Suits. The business is owned by a company called LS Ltd. The business is successful and Larry wants to expand.As he needs additional capital, he wants to raise $5 million by issuing shares.One option being considered by Larry is to offer the shares to a number of institutional investors.An alternative is to float the business, that is, offer the shares to the public and apply for listing on the ASX.Larry approaches you for advice on the following matters:

a.What are the implications under Ch 6D of the Corporations Act of the two fundraising options being considered?

b.If a decision is made to carry out a float, what type of disclosure document will be required and what type of information must it contain?

c.Can Larry advertise the fact he is raising funds?