Our readers may have already read our "Doing Business in Australia" series of articles posted before. Recently quite a few relevant facts and policies have been updated. Hence we have produced a new version. You will be able to receive the updated articles about "Doing Business in Australia" in the coming weeks.
Foundraising
The Corporations Act regulates all fundraising activity within Australia, whether by an Australian or foreign issuer.
Unless specific exceptions apply (as set out in the Corporations Act), a person is prohibited from offering securities to an Australian resident unless it first lodges with ASIC a disclosure statement which contains all the information that investors and their professional advisers would reasonably require to make an informed assessment of the offer. Additionally, the Corporations Act requires certain ongoing disclosure in relation to securities.
The are various exceptions to the disclosure regime. These apply principally in respect of offers made to sophisticated (or high net worth) investors, where the minimum investment amount is in excess of a prescribed threshold, and also where the offer is a personal offer that is made to a limited number of investors who invest below a certain threshold. Other exceptions also apply in the context of rights issues to existing shareholders for listed entities that are subject to the continuous disclosure rules.
In general, Australia is seen as having an issuer-friendly regime which allows fundraising to be conducted quickly and (in the case of secondary offerings) often without a formal prospectus.
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To view our previous news for Chinese investors and various articles in relation with the topic ‘Doing business in Australia’, please click the button on the upper-right hand corner on our WeChat platform, and choose ‘view history’. The contents include:
Business set up in Australia, business structures,company administration, etc.
Background information of Australia, including Australian government, legal system, and business structures, etc.
Laws and regulations in various common areas, including protection of technology and intellectual property, anti-trust and consumer law, contract law, business migration, real property, public takeovers, and electronic commerce etc.
