Hi, need to submit a 1750 words essay on the topic Corporate Fundraising.
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) (“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 “public company means a company other than a proprietary company” (“Corporations Act 2001” 2005). Also, the corporate name of a proprietary company is distinct to that of a public company, i.e. a limited proprietary company is denoted with the abbreviation “Pty. Ltd.” while an unlimited proprietary company is abbreviated as “Pty.” Contextually, the public limited companies are denoted as “Ltd.” at the end of the registered name of the entity (“Corporations Act 2001” 2005). 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 “more than 50 non-employee shareholders” through the obligatory issuing of prospectus where proprietary companies (either limited or unlimited) are exempted from such permits (“Corporate Law” 2011). From a managerial concern, fundraising activities performed by organizations such as The Green Coffee Company Ltd will quite essentially give rise to company liabilities and thus seize the risk of affecting shareholders’ or investors’ interests. .