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Question related to Australia Commercial Law Fresh Ltd need to raise finance for the expan

Question related to Australia Commercial Law Fresh Ltd need to raise finance for the expan

Question related to Australia Commercial Law

Fresh Ltd need to raise finance for the expansion of its fresh food business. it is considering two options.

1 a pubic issue of redeemable preference shares

2 a loan from Strategic Finance Ltd

if it proceed with option 2, Strategic requires Fresh to provide security for the loan. Fresh owns land, building, plant and equipment and trading stock.

question 1:

should strategic register its security interest? which form of security would you recommend and why would you recommend it?

question2:

if strategic registers a security interest in the form of a circulating asset over the company's asset, would the charge be a legally effective security if:

1 Fresh did not register the security interest under the Corporation Act?

2 Strategic, rather than Fresh, registered the security interest under the corporation Act? What would Strategic have to do in order to register the security interest?

3. The security interest was registered 50 days after it was created and four months later the company is put into voluntary administration?

4 The security interest was registered 50 days after is was created and in the meantime a security interest in favour of another finance company was executed and registered?

Rosa Parks 06-Nov-2017

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