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The intent of this was to keep the share capital in the company to themselves and friends whom they would like to have as members of the company.
In the case of Corporate Affairs Commission V David James Finance Ltd an invitation to 12,500 company employees was also held not to amount to an offer to the public or a section of the public. However, in Re South of England Natural Gas and Petroleum Company Ltd a document circulated to 2000 members of certain gas companies was held to constitute an offer to the public. Swifin Early took the view that merely because the offer document was sent to those most likely to take up the offer that does not mean that it was not a valid offer...
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