COMPANY LAW AND AUDIT

COMPANY LAW AND AUDIT

Hurrs Limited is a private limited liability company engaged in animation productions.
The company is owned and managed by the Hurrs family. There are six family members holding shares to a total value of ÂŁ50,000. Four of the members are directors.
To compete internationally the company needs to raise substantial additional finance.
Four options are proposed:
Option One: That the company remains a private company but seeks to raise further share capital.
Option Two: That the company converts to a public limited company, offers shares to the public and seeks a listing on the London Stock Exchange.
Option Three: That the company converts to a public limited company and then provides loan guarantees to a group of investors who have expressed an interest in purchasing shares in the company.
Option Four: That the company seeks loan capital by way of debentures secured by means of a combination of fixed and floating charges on the various company assets.
The existing members are keen that the chosen option should maximise their continued control over the affairs of the company and minimise public scrutiny.
In relation to the above:
Advise the directors as to how each of these options might be achieved and their potential consequences. Your answer should include an explanation of the potential impact such changes might make on the ability of the present members to control the affairs of the company.

Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills

WORD COUNT:2500 WORDS EXCLUDING REFERENCE

 

"Is this question part of your assignment? We Can Help!"