nOW YOU CaN SHARE WITH THE CROWD

It is the news we've been waiting for!

Treasury has proposed legislation for small business crowdfunding, via the company structure that 99% of businesses use, i.e. the proprietary company. It is great news, however we are yet to digest all the differences and implications, including the removal of concessions for Public companies that use CSF!

Upfront establishment of a public company was always going to be a big deterrent, due to the cost (ASIC fees, legal, accounting and compliance).

You will still need to respect your investors and invest in equality, transparency and compliance, with some of those requirements coming up front, such as;

•  2 Director minimum (and a majority Australian)
•  Annual accounting reports (at investor standard)
•  Audit (for >1 mill CSF funding)
•  Custom company constitution (min rights, takeover provisions etc)
•  Keeping a shareholder register (and under the 50 non CSF share limit)
•  Restricted related party transactions (or subject to shareholder approval)
• & others minimum standards

Keep in mind that the pty ltd is only a proposal, so it will take at least another 9 months to become law.

Stay in touch to learn more,

CFIA