Semester Examinations
You set up the company for the clients. Each of them is appointed director. Mary and Tom each have 38% of the shares, but Tanya only has 24% because she contributed less capital when the partnership was established. Two years later, they make another appointment to see you. The company has become very successful with a chain of stores across Australia. They want to raise funds for further expansion of the business by issuing shares to the public. You advise them that they would have to change the company to a public company.
Question 1, They seek advice on how to do this and on the legal requirements for making such an offer to the public?
Question 2, They also seek advice on a proposed transaction in which they propose to buy a lot of shares in a rival company?