Chapter 6D of the Corporations Act 2001 (Cth)(Act) contains what is widely referred to as the “fundraising provisions” which regulate how capital can be raised in Australia without issuing a formal disclosure document.
The general rule is that companies that raise more than A$2Million are required to issue a disclosure document. In particular, an offer requires a disclosure document if the result is that securities are issued to more than 20 people in a 12 month period, and that more than $2 million is raised. This is known as the “20/12 rule”. [Read more…]
