Ginko Ltd needs to raise $10million to purchase machinery. The directors propose to issue debenture stock to the public. The company will be required to provide a prospectus.
With reference to the Corporations Act discuss:
- Whether the directors have to insert information in the prospectus that the company is being sued by the Taxation office for non-payment of taxation?
- Who is liable to investors if the prospectus has a mistake in it or omits material information? Are there any defences available?
- Are there any alternatives available if the directors do not want to issue a prospectus?