BTX2000 Final: Final BTX2000 Exam Notes
8 Aug 2018
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Shares - come within the definition of securities" in s92: fundraising provisions of the corps act require companies that offer shares + other types of securities to disclose relevant + accurate information to potential investors. So that they can make an informed decision whether or not to take up the share. S1070a(3) - ownership of a share is capable for being divided into legal + equitable interests (generally the same person holds both interests in share) Convertible debenture/note - has similarities to a share options bc it entitles the holder to convert a loan to the company into shares at a future date. Involves a company borrowing money on terms whereby the loan may be redeemed by a later issue of shares: debenture/note holder in effect has an option to take up shares in a company at a future date.
