Australian Parliament approves Crowd-sourced Funding Bill

Crowd funding is not new, but its development in Australia has been affected by our legislative framework.

On Monday 20 March 2017, the Corporations Amendment (Crowd-sourced Funding) Bill 2016 (Cth) (Bill) was passed and the new framework was approved.  This will start to change the way that funding can be sourced through crowd funding. The Government approval of this Bill has taken three years of drafting, roundtable sessions and industry feedback.

Some key points are:

• CSF raising is for a public company limited by shares with consolidated annual revenue less than $25 million and value of gross assets less than $25 million.
• A special cap of $5 milllion on CSF raising in any 12 month period with a specific offer document required.

Please click here to read a Key Point Summary about the Bill.

Lavan has been working with an intermediary company with experience in this area. If you would like more information on this innovative funding area please contact Corporate Services partner, Tony Chong on tony.chong@lavan.com.au or 08 9288 6843.