Crowd pleaser? Equity Crowd Sourcing Bill finally passed

Holy Toledo Batman, it happened - the Corporations Amendment (Crowd-sourced Funding) Bill 2016 actually passed through the Senate.

After the initial bill lapsed following the double dissolution election last year, another was introduced in November which has officially been passed by the Senate (subject to one small change). The bill creates a framework for equity crowd source funding which currently does not exist.

What does this mean?

It means that small public (unlisted) companies can raise funds by issuing shares to a large pool of mum and dad investors. It gives regulatory relief to small public companies which would otherwise be required to comply with heavy regulatory burdens normally associated with being a public company. It means that start-ups will be able to raise capital through a diverse group of investors and will be able engage the community in their corporate journeys. Sounds great, right?