Before a company issues shares to the public, the company must:
A) register the prospectus with the Australian Accounting Standards Board.
B) first offer the shares to the existing shareholders.
C) register the prospectus with the Australian Securities Exchange.
D) provide a disclosure document with an application form attached.

Question

Quizplus · Accepted Answer

The correct option is D, as according to Australian law, a company must provide a disclosure document and an application form with sufficient information for potential investors before issuing shares to the public. This is to ensure that investors are fully informed about the company and its financial position before making any investment decisions. The disclosure document must be registered with the Australian Securities and Investments Commission. Option A is incorrect as the prospectus is registered with ASIC, not the Australian Accounting Standards Board. Option B is incorrect as companies may offer shares to the general public before offering them to existing shareholders. Option C is incorrect as the prospectus is registered with ASIC, not the Australian Securities Exchange.

Before a Company Issues Shares to the Public, the Company