1. How does the principle of limited liability apply to the members of a company? (Maximum 200 words) 2. Explain what is meant by the duty of directors to avoid insolvent trading under the...

1. How does the principle of
limited liability
apply to the members of a company?

(Maximum 200 words)

2.Explain what is meant by the duty of directors to
avoid
insolvent trading under the Corporations Act. 200 words

3.a) Under the following scenarios, would Koala Ltd need to issue a
disclosure document
under Ch 6D of the Corporations Act? List the
paragraph of the Corporations Act
if Koala is exempt from disclosure (5 marks)

· (A) Koala Ltd is raising $1.5 million over a 12-month period from five (5) investors.

· (B) Koala Ltd is issuing 10 million shares at $1.50 each to the public with no minimum subscription amount.

· (C) Koala Ltd is issuing 10 million shares at $1.50 each to the public with a minimum subscription amount of $750 000.

· (D) Koala Ltd is issuing $100 million in debentures to several very large banks located in Australia.

· (E) Koala Ltd is issuing 10 million shares at $1.50 each to Wombat Ltd’s managing director, chief financial officer and their respective spouses.

(100 words)