Trevor Gregorius operates a sole trader business selling a limited range of environmentally friendly stationery and office supplies. He is thinking of reorganising the business as a private limited company because he would like to grow the business and expand the range of products. To increase the capital of the business, he is thinking of asking his sister Leonora (who is a solicitor and also works for the business) and friends Marvin Friedman and Dave Lestrange to invest in the company. Trevor comes to you for advice. a.Based on the scenario above, explain to Trevor i.the legal meaning of separate legal personality and limited liability. ii.four advantages for Trevor of separate legal personality and limited liability when organising the business as a private limited company instead of as a sole trader. iii.two disadvantages for Trevor of organising the business as a private limited company instead of as a sole trader. b.As Trevor is very concerned about operating a socially and environmentally responsible business, explain to Trevor: i.for what purpose the concepts of separate legal personality and limited liability were developed to benefit both shareholders and society at large. ii.a disadvantage of separate legal personality and a disadvantage of limited liability for a modern market economy. c.Explain to Trevor in your own words the financial stakes and information needs of Leonora, Marvin and Dave as shareholders in the company. Part 2: Company formation and administration Having considered the information in the report and discussed matters with Leonora, Marvin and Dave, a few days later, Trevor decides that he wants to set up a private limited company as follows. The companys name will be Environmentally Friendly Stationery Ltd. The companys registered address will be 15 Tree Lovers Road, Forest Town, postcode FT12 3LVR in the UK. Capital 100,000 (100,000 shares of 1 each). Trevor will invest 40,000, Leonora will invest 30,000, and Marvin and Dave will invest 15,000 each. Trevor to be the companys director. Leonora to be the company secretary. Required: a. Complete Parts 1 to 3 and Part 5 of the application form (Form IN01) based on the information provided. Add a brief explanation where necessary. Use the information about Form IN01 in the module materials. Do not download the actual form from the government website. b.In respect of the register of people with significant control, explain : i.Why must Environmentally Friendly Stationery Ltd keep a register of people with significant control? ii.For what purpose must the register of people with significant control be publicly available? c.Environmentally Friendly Stationery Ltd could take out a long-term bank loan to raise additional capital. Regarding methods to increase capital: i.Explain, in your own words, three other methods which Environmentally Friendly Stationery Ltd, once established and operating as a private limited company, could use to further increase its capital. ii.What must the company consider in respect of each of the three methods when deciding how to increase its capital?