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Solution Library
Offer and Acceptance Under Securities Act 1978
Question
Jennifer, Bobby and Brittany run a business that develops chocolate treats, some of which are commercially viable. The business is doing well and needs further money for expansion. Jennifer, Bobby and Brittany, the three shareholders (who are also the directors), have no further money to invest. Jennifer, Bobby and Brittany have decided that the company will seek further capital through an issue of shares. The offer will be made to employees of the company (of which there are five), those people with surnames starting with A – M in the telephone book, members of Jennifer’s netball club, and money managers who are close friends of Bobby.
Required:
Advise Jennifer, Bobby and Brittany whether the offer comes within the Securities Act 1978.
Summary: This question belongs to corporate law and discusses about offer of acceptance under Securities Act 1978.
Total word count: 361
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