Corporate Fundraising Essay Example | Topics and Well Written Essays - 1750 words - 2

Corporate Fundraising - Essay Example As can be observed with reference to the case scenario presented, The Green Coffee Company Ltd is aiming at investing in Vietnam which requires a substantial amount of funds. It is worth mentioning in this context that corporate fundraising options available to a particular business depends on various factors including the size of the company which further signifies its certification as a public or a proprietary company as per the Corporations Act 2001 (Cth) (â€Å"A Practitioner’s Guide to Corporate Law†, 2007). To be noted, as per the Corporations Act 2001 (Cth) Section 45A, a proprietary company can be limited or unlimited with share capital. Another type of company identifies as per the Corporations Act 2001 (Cth) is the public company wherein the Section 195 of the Act specifies that â€Å"public company means a company other than a proprietary company† (â€Å"Corporations Act 2001† 2005). Also, the corporate name of a proprietary company is distinct to that of a public company, i.e. ... With reference to this context, The Green Coffee Company Ltd can be identified as a public limited company which shall further determine its fundraising obligations when attempting to invest in an international expansion venture to Vietnam. One of the major differences and opportunities for The Green Coffee Company Ltd in fundraising, being a public limited company, is that it can issue equities or sell its debentures or shares to â€Å"more than 50 non-employee shareholders† through the obligatory issuing of prospectus where proprietary companies (either limited or unlimited) are exempted from such permits (â€Å"Corporate Law† 2011). From a managerial concern, fundraising activities performed by organisations such as The Green Coffee Company Ltd will quite essentially give rise to company liabilities and thus will seize the risk of affecting shareholders’ or investors’ interests. It is in this context that The Green Coffee Company Ltd must ensure its com pliance with the norms prescribed in the Chapter 6D of the Corporations Act 2001 (Cth). It is worth mentioning in this regard that The Green Coffee Company Ltd is planning to offer shares to the public with the intention to obtain a capital of around $7 million and $15 million owing to which the company must ensure the disclosure of all the required and lodged documents prior to offering securities as per the provisions mentioned in Section 727 (1) of Chapter 6D in the Corporations Act 2001 (Cth) (â€Å"Corporations Act 2001, 2005†). It is mandatory on this note to lodge the disclosure document to the Australian Securities and Investments Commission (ASIC) as per Section 709 of the Corporations Act 2001 (Cth) (â€Å"Better prospectus disclosure† 2006). Contextually, any identification of forging in the