The Federal Government is reaching out to business and seeking views on whether the Corporations Act 2001 should be amended to reduce compliance costs and make capital raising more flexible for small proprietary companies in its just released consultation paper on Facilitating crowd-sourced equity funding and reducing compliance costs for small businesses

The paper offers small business an opportunity to suggest changes to the legislation which will reduce and streamline the regulatory burden imposed on them and in turn, save them time both time and money. For example, the Government is seeking feedback on matters such as whether the requirement to maintain a share register should be changed for small proprietary companies and how to make execution of documents by companies easier and more straightforward.

The Government is also seeking feedback on how to give small proprietary companies additional flexibility to raise capital including whether such companies should be able to access the Government’s proposed crowd-sourced equity funding (CSEF) framework for public companies (which is also outlined in the paper for the first time).

Submissions on the consultation paper are due by Monday, 31 August 2015 and will be considered by the Government before it makes a decision on whether to proceed with any changes.

The paper is part of the Government’s initiative to reduce red tape and other impediments to small business growth and is giving small business and other stakeholders an opportunity to be heard. Now we would like to work with you on identifying the opportunities it presents for your business, and in making submissions on matters of importance to your business.