On 12 September 2018, the Corporations Amendment
(Crowd-sourced Funding for Proprietary Companies) Bill 2017
(Cth) was passed, allowing for amendments to the Corporations
Act that would extend the availability of crowd-sourced funding
(CSF) to proprietary companies. It is great to see
that, as of today, these amendments have come into effect.
CSF allows a large number of individuals to make small
contributions towards a company in exchange for an equity stake.
This source of funding is particularly relevant for proprietary
companies who, because of their inability to make public offers and
the cap placed on their number of shareholders, are often
restricted in their ability to raise larger amounts of capital
through alternative means.
