Sasha and Emi are two friends who met when they worked together as chefs at a famous restaurant in New York, but both have now moved to Adelaide. They have decided to set up their own restaurant which will 'fuse' the best of the cuisines of Japan (where Emi was born) and Australia (where Sasha comes from. Each of them has come from New York with $100 000, which they want to invest in the new business.

(b) They decide to issue 10000 $10 shares to each of them, reflecting the capital they have equally contributed.

Emi's situation is quite straightforward. She is single with no family in Australia. She intends to simply own her shareholding in her own name.

Sasha, on the other hand, has a partner, who is a doctor, and two young children. Before her spell in New York, Sasha and her partner established a Family Trust, and Sasha wants her interest in the new company Sashemi Pty Ltd, to be held through the family trust.

Advise Sasha whether, and if so how, her interest in the restaurant company can be held through the family trust.

(c) It is one year after the company was incorporated, and business is going well. An important Japanese trade delegation visits Adelaide, and the restaurant hosts a banquet for them. Unfortunately the banquet, designed to showcase local produce, includes a mushroom which may have been poisonous, and was picked by Sasha in the local forest. The husband of one of the visiting delegation becomes seriously ill. He is in hospital for several weeks, which causes great expense and delay, including him missing key acting auditions back in Japan, and causes anxiety to his wife, not to mention embarrassment to the local government.

Emi is for furious with Sasha her careless mushroom-collecting. When the visitor starts proceedings against the restaurant for a six-figure sum, Emi says that as it is Sasha's fault, Sasha or her family trust should be liable to pay the damages.

If the proceedings are successful, where does the liability to pay the damages lie?

(d) It is three months after the mushroom affair, and it turns out the restaurant won the proceedings. (An expert witness showed that mushroom wasn't poisonous to humans, and that the visitor had an unknown allergy to all mushrooms).

However, the publicity of the trial has been really good for Sashemi's business. They have full bookings for the next three months.

Sasha and Emi now think that they need to open a more informal version of the restaurant, catering for breakfast and lunch in the city and helping with the increased demand.

They need more capital to fit out the new premises in the CBD. They would also like to bring more investors on board and have many friends and customers interested.

Advise them whether they need to convert to a different type of company in order to expand and take on more capital and thus shareholders.

Please explain more carefully Thanks