First Principles of Business Law
Business organisations in Australia

8. Public companies

Question 1. Can a proprietary company raise money by inviting third parties to become shareholders?

 

 

 

Read the statements below and select the best one.

(a) A proprietary company can raise money by issuing shares to third parties, but only until there are 50 members of the company. And it cannot find investors by offering to sell shares to the general public.

(b) A proprietary company can raise money by issuing shares to third parties, but only until there are 50 members of the company. To find the necessary investors, offers of shares can be made to the general public.

 

 

 

 

 

 

 

 

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