When can you raise funds without a disclosure document?

In certain circumstances, you may not need to comply with the requirement to provide a disclosure document when fundraising. It is important that you get legal advice about whether this could apply to you. A general summary of these circumstances is provided here. For more information see Regulatory Guide 254 Offering securities under a disclosure document (RG 254).

In summary, a disclosure document is not required when:

  • an offer is a personal offer, and if:
    • offers or invitations have been made to fewer than 20 persons in the previous 12 months, and
    • the new offer will not result in more than $2 million being raised in that 12 months (see sections 708(1)–(7));

    Note: You must not advertise the offer when you rely on this exemption

  • the offers are made to specified people who are presumed not to need disclosure because of their financial capacity, experience, association
    with the issuer or wholesale status (see sections 708(8)–(12));
  • the offers are made to current holders of the securities (see sections 708(13)–(14A));
  • no money or other form of payment is payable for the securities (see sections 708(15)–(16));
  • other disclosure regimes under the Corporations Act apply (that is  schemes of arrangement and takeovers) (see sections 708(17) and (18));
  • the offers are made to creditors under a deed of company arrangement, if certain conditions are met (see section 708(17A));
  • the offer of debentures is made by certain types of financial institutions (see section 708(19)).


What's new

ASIC facilitates crowd-sourced funding by public companies

We have released guidance for public companies and crowd-funding platform operators to support them in using the new crowd-sourced funding regime, which commences on 29 September 2017. 17-321MR. 21 September

ASIC reports on how investors decide to invest in IPOs, 17-287MR, 31 August

More releases on fundraising

Last updated: 20/10/2014 12:00