Lodging Prospectuses and Disclosure Documents

Question: Discuss about the Lodging Prospectuses and Disclosure Documents. Answer: Introduction: According to Part 2F.2 of the Corporation Act 2001 a company can vary its class rights with respect to share even if they do not have in their constitution the procedure of varying this shares, thus according to section 248B of Corporation Act 2001 HealthPharm Ltd can vary the shares by passing a special regulation . HealthPharm Ltd can only pass this resolution if 75% of the total share holders agree to it, in this particular case Infinity Venture Capital holds 30% of the total share capital so the resolution can only be passed if they agree. HealthPharm Ltd has to provide with a written notice to Infinity Venture Capital and other share holders within 7 working days about the variation in class. A notice has to be given by HealthPharm Ltd to the AISC in the prescribed form about the change of the class of shares according to the provisions of section 246F of corporation act 2001. This notice has to be given within 14 days after such division is made according to section 246F (2) of Corporation Act 2001. HealthPharm Ltd Has to lodge copy documents and resolutions provided in section 246F (3) of Corporation Act 2001 with AISC as it is a public company. Generally when a public company offers its shares for listing in the ASX for public to invest in they are bound to disclose a few documents to the investors. Disclosure Document is a very wide term, which is used to illustrate all the documents, which are required for fund raising. The company listing its shares has to provide the investors with the prospectus of the company, a statement containing the information related to the offer, statement related to profile and simple corporate bond prospectus divided into two parts. HealthPharm Ltd have to lodge a disclosure documents with respect to chapter 6D of the Corporation Act 2001. They have to lodge an prospectus with the AISC for the investors reference, the document will contain the strategies of the fund, the background of the company and the fee structure and financial statement of the fund. they also have to comply with the provisions of section 710-716 of the Corporation Act 2001 with respect to the formalities relating to the filing of the document and the time period within which such documents are to be logged. The company also comply with the procedure related to listing of securities provided in section 717-725 of the Corporation Act 2001. Bibliography: Friedlander, David, 'Corporate: Shareholder Self-Protection and Activism in Australia' (2014)LSJ: Law Society of NSW Journal75. Lodging Prospectuses And Other Disclosure Documents | ASIC - Australian Securities And Investments Commission (2016) Asic.gov.au https://asic.gov.au/regulatory-resources/fundraising/lodging-prospectuses-and-other-disclosure-documents/ Smith, Helen,Australia's Company Law Watchdog: ASIC and Corporate Regulation(University of Tasmania, 2015) vol 34