Following the introduction of the Corporations Amendment (Crowd-sourced Funding for Proprietary Companies) Bill 2017 into Parliament on 14 September 2017, the Government has now released exposure draft regulations which provide further detail on the extension of the crowd-sourced funding (CSF) framework to proprietary companies.
The exposure draft regulations:
- clarify that proprietary companies with one or more CSF shareholders are only exempt from the takeover rules in section 606 of the Corporations Act 2001 (Cth) (Act) while the company is eligible to make a CSF offer;
- modify the application of the unsolicited offer provisions in Division 5A of Part 7.9 of the Act in relation to any securities of a proprietary company that is an eligible CSF company and has one or more CSF shareholders;
- simplify the structure and content of CSF offer documents for proprietary and public companies;
- prescribe additional content requirements for CSF offer documents relating to proprietary companies; and
- require CSF intermediaries to check identification documents for all the directors and senior managers of proprietary and public companies making CSF offers.
Submissions on the draft regulations are due by 2 February 2018.
See Treasury’s media release dated 11 December 2017.