Lw321 Unit 1 Essay

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The University of Notre Dame Australia [pic] LW321 CORPORATIONS AND PARTNERSHIPS BS340 COMPANY LAW LECTURE NO. 6 SEMESTER 2, 2013 THURSDAY 5 SEPTEMBER 2013 CORPORATE FUNDRAISING LECTURER: PROFESSOR GERARD RYAN NOTE TO STUDENTS: In this lecture we will consider the two main sources of finance for companies, namely ‘equity’ (or share) finance and debt finance. We will also consider the differences between raising capital privately and by seeking invitations from the public. The fundraising provisions of the Corporations Act generally seek…show more content…
3 In this lecture we will consider in detail the fundraising provisions of Chapter 6D (sections 700 to 742) of the Corporations Act. 4 The fundraising provisions protect investors by requiring a corporation that seeks to raise funds by issuing ‘securities’ to disclose relevant information so that investors can make informed investment decisions. 5 Although your textbook (in Chapter 18) draws a distinction between raising share capital and debt capital, you should be aware that Chapter 6D is concerned with ‘securities’ and therefore generally with shares, debentures or hybrids/combinations of share and debt capital instruments. 6 The term ‘security’ is defined in section 761A of the Corporations Act (a provision in Chapter 7, Financial services and markets) but with one exclusion (see section 700(1)). 7 Note, in particular, that the definition of security includes shares, debentures and options to acquire, by way of issue, shares or

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