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Open for comment: draft legislation to extend crowd-sourced fundingTuesday, May 16, 2017
The government has released for comment draft legislation to make it easier for private companies to access crowd-sourced equity funding (CSEF).
CSEF is a new fundraising approach that allows entrepreneurs to raise funds—up to $5 million per year—from a large number of individuals in return for equity in their company, with lower disclosure costs than traditional public equity offers.
Legislation to implement CSEF for public companies passed the Australian Parliament on 22 March 2017, and will commence 29 September 2017.
The draft legislation will amend the Corporations Act 2001 to extend the CSEF regime to proprietary companies, improving access to finance for start ups and innovative small businesses.
Submissions can be made until 6 June 2017 via The Treasury website.
More information about the CSEF regime for public companies is available at the Australian Securities and Investments Commission website.