The Government has released exposure draft regulations providing further detail on the extension of the crowd-sourced funding (CSF) framework to proprietary companies. This is the next step in enabling proprietary companies to access equity crowdfunding, and follows the legislation introduced to the Parliament on 14 September 2017.
The draft regulations also make refinements to the existing CSF regime for public companies, to add flexibility to the structure and contents of CSF offer documents in addition to requiring disclosure relevant to the proprietary companies, and make other minor changes to clarify the operation of the existing rules.
In relation to proprietary companies, the draft regulations provide that the exemption from the takeover rules for CSF proprietary companies will be limited to companies that are still eligible to make a CSF offer, as it would be inappropriate for proprietary companies that out-grow the CSF framework to continue to be exempt from the takeover rules in perpetuity. The draft regulations also modify the unsolicited offer provisions in the Corporations Act, which apply to all companies, to make these more flexible for proprietary companies with CSF shareholders.
All interested parties are invited to lodge a submission by Friday 2 February 2018. More information on the existing CSEF regime for public companies is available on the Australian Securities & Investments Commission website.
You can submit responses to this consultation up until 2 February 2018.
Interested parties are invited to comment on this consultation.
While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.
All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.
Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.
How to respond
Address written submissions to:
Financial System Division
PARKES ACT 2600