Question

Hi Can you please answer this following question with Harvard referencing and no plagiarism and also reference list. Thanks you very much for answering in the best way. ( Really sorry for the long question)

Flywell Ltd is the owner of an Australian domestic airline. The Australian travel market is very competitive. The management of Flywell Ltd is concerned about the plans of a rival airline company intending to expand its Australian domestic operations. The board of directors of Flywell Ltd decides to revamp its fleet of aircraft and purchase extra planes, but the company does not have the capital. Flywell Ltd wishes to induce each investor to invest $10,000 with the company in exchange for shares in the company. The company aims to raise between $9 million and $11 million in new funds. The company has approached you for advice.

Required:

Advise Flywell Ltd of its fundraising obligations under the Corporations Act, paying particular attention to the specified facts. (Corporations law)

Answer 1

Firstly, according to corporations law, Flywell Ltd needs to be a public company as the number of non-employee shareholders in the company will be more than 50 (as they are planning to raise $11 Million from 110 investors). While fundraising, Flywell Ltd needs to ensure that they provide the disclosure form to the potential investors. This disclosure form describes all the fundraising documents and regulations needed for issuing the securities to the investors. In this case a prospectus kind of disclosure is preferred among the available disclosure formats as it provides detailed information about the system, the schematics in which the securities shall be issued. For in depth knowledge in the the same, I would suggest you to go through the RG254 document of the corporations act availabile online.

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