Tag Archives: Corporations Amendment (Crowd-sourced Funding) Act

Private companies face public conundrum under new crowdfunding rules

A sticking point from the Federal Government’s Corporations Amendment (Crowd-sourced Funding) Act 2017 , was that there was no scope for private (proprietary limited) companies to access crowdfunding. Government sought to address this in the latest Federal budget, but there could be a catch.

The Crowdfunding bill passed in March, and becomes law this September. Feedback suggested few start-ups would consider crowdfunding under the model due to private companies being unable to raise money from the public and access the new regime, and the compliance burden of trading as a public company.

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