Fast-tracked legislation means that Private companies can now engage in crowdfunding
13 September 2018
The Australian government passed the Corporations Amendment (Crowd-sourced Funding for Proprietary Companies) Bill 2017 (Cth) yesterday.
The legislation has been fast tracked and will come into effect by the end of October at the latest (28 Days after receiving royal assent which can take up to two weeks).
Business Services Partner, Sharon Houghton, from accounting and professional services firm, BDO Australia, commented on the fast-tracked legislation.
“This is good news for thousands of Australian private businesses that will now have the ability to crowd-source up to $5 million a year from retail investors, capped at $10,000 per retail investor, in return for equity in their company.”
“The government has previously been criticised for the long and staggered release of this legislation, which was initially introduced in November 2016 however yesterday was a welcome development to the budding industry.” Ms Houghton continued.
“BDO is excited to see new capital avenues becoming available for Australian companies and will be interested to see the markets response to the increased accessibility of crowd-funding that comes into effect in late October this year.”