Business Law Assignment: HealthPharm, Infinity Venture, ASX

This business law assignment provides solutions to three key issues concerning HealthPharm Ltd. The first issue addresses the priority of Infinity Venture's circulating security interest in the event of HealthPharm's insolvency, analyzing relevant sections of the Corporations Act 2001. The second issue examines the validity of HealthPharm's proposal to divide shares into two classes, referencing the Australian Securities and Investment Commission Act. The third issue outlines the obligations HealthPharm must fulfill to list its shares on the Australian Securities Exchange (ASX), including standard disclosure procedures and requirements. The assignment demonstrates an understanding of corporate law principles and relevant legislation, offering practical advice to the involved parties. It includes a comprehensive reference list with citations to relevant legislation and legal texts.

Running Head: BUSINESS LAW
Business law
Name of the student:
Name of the University:
Author Note

1BUSINESS LAW
Answer one: Advice to Infinity in case of HealthPharm’s insolvency
Issue:
Priority of Infinity Venture in relation to its circulating of security interest is to be
analyzed in the event of insolvency of the company Heath Pharm.
Rule:
According to section 420b Corporations act 2001, the court may give authority to the
controller to dispose of the property in the event of the insolvency of the company even though
security interest exists in the aforementioned property.
Application:
A receiver will be appointed by the court on behalf of the party who has some interest in
the circulating security of the company in the event of winding up of the company. However it is
to be stated that the company must not take the decision of winding up voluntarily
( Legislation.gov.au., 2017) The company Infinity Venture must clear all the debts that are
attached to the circulating security interests of the Health Pharm Ltd. in the event of its winding
up.
Conclusion:
Thus in conclusion, it can be stated that Infinity Venture, will receive priority in claiming
the circulating security interests in the event of winding up of Health Pharma.

2BUSINESS LAW
Answer two: Advice to Health Pharm regarding the proposal of dividing shares
Issue
The advice to be given to HealthPharm Ltd. on the validity of the proposal of dividing the
shares into two classes is to be discussed and analyzed.
Rule:
According to the Australian Securities and Investment Commission Act, any company
proposing to issue new shares or split the shares needs to intimate the Australian Securities
Commission twenty eight days after the commencement of such issue (Legislation.gov.au.,
2017)
Application:
It can be said that the company Health Pharm Ltd. can split the shares into two classes by
following the provisions as stated by the Australia Securities commission (Bainbridge, 2015).
The company will have to fill a prescribed form regarding the issue of shares, the type of shares
it is issuing, the details of the due amount on the shares.
Conclusion
Thus to conclude, it can be said that the company’s decision of diving the shares into two
classes is valid and the company has every right in doing so.
Answer three: Obligations of a company in listing its shares on the ASX
Issue:
Obligations of the company HealthPharm, to list its shares on the Australian Securities
Exchange and standard disclosure procedure to do the same is to be followed.

3BUSINESS LAW
Rule:
According to Corporations Act 2001, the listing of a company’s shares on the Australian
Securities Exchange needs to follow certain requirements as stated by the ASX
(www.asx.com.au, 2017). The company wishing to list its shares must file a prospectus
providing information about its profits and losses, assets and liabilities of the company.
Application:
It can be stated that the company HealhPharm, to list its shares on the ASX needs to have
three hundred investors who are not affiliated, twenty percent of the shares of the company
should be free floating and it should have tangible assets worth four million dollars or market
capitalization of fifteen million dollars and the same needs to take a property test prior to the
admissions.
Conclusion
Thus to conclude it can be said the Company HealthPharm has to follow the listing
process that determine obligations required for listing its shares on the ASX.

4BUSINESS LAW
Reference List:
www.asx.com.au. (2017). Asx.com.au. Retrieved 16 November 2017, from
http://www.asx.com.au/listings/listing-with-asx/listing-requirements.htm
Australian Securities and Investments Commission Act 2001. (2017). Legislation.gov.au. Retrieved 21
November 2017, from https://www.legislation.gov.au/Details/C2017C00326
Corporations Act 2001. (2017). Legislation.gov.au. Retrieved 21 November 2017, from
https://www.legislation.gov.au/Details/C2017C00328
Bainbridge, S. (2015). Corporate Law. West Academic.