Rob, Tony and Pete run a successful car dealing partnership and now wish to incorporate for several reasons including limited liability. However, Rob, Tony and Pete are unsure as to which type of company they should register. On the one hand, Rob says that a public company would give them access to enhanced capital raising. On the other, Tony and Pete think that they could lose control of their business if they opt for a public company.

Question: Advise Rob, Tony and Pete as to the advantages and disadvantages associated with either type of company. Make sure you advise with respect to Australian company law only (10 marks).