Most businesses will need to notify the Australian Securities and Investments Commission (ASIC) for a number of things during their business journey, such as:
- Changing business details
- Any breach of duties
- Director leaving the company
One situation where you’d need to notify ASIC is where your business has used Crowd-Sourced Funding (CSF). You may have heard of this term if you’re involved in the startup world, and it’s a popular option for many reasons.
So, let’s go through what CSF actually is and why you need to disclose this to ASIC.
What Is Crowd-Sourced Funding (CSF)?
Crowd-sourced funding is a popular form of raising funds used in the startup world. It’s great for startups because you can receive small amounts of cash from a large pool of investors, which helps you hit the ground running in the early stages.
Why Should I Consider CSF?
Crowd-sourced funding is common among startups who need that extra boost at the beginning of their business journey. CSF offers more flexibility because of the large number of investors, so lots of startups go for this option to reduce any headaches.
However, it also means their approval may be needed for ongoing business activities. For example, any changes to Shareholders Agreements will need to be run by your investors first (this is something that can be easily simplified by having the right CSF Company Constitution in place).
What Laws Should I Be Aware Of?
When it comes to CSF, there are two main pieces of legislation you should be familiar with;
- Corporations Amendment (Crowd-sourced Funding) Act 2017
- Corporations Amendment (Crowd-sourced Funding) Regulations 2017
If you have a CSF Company Constitution, this should also set out some general rules for you to follow, and this would be tailored to your business.
Who Can Help Me Notify ASIC?
Notifying ASIC involves a number of different forms, so it’s worth getting a lawyer to walk you through the process. Our lawyers at Sprintlaw can work with you to ensure you don’t miss any important details when notifying ASIC.
Our CSF Notification package includes the following:
- (Optional) lodging a form 362 to appoint Sprintlaw as your registered agent
- Exporting your company Cap Table and importing the relevant data to applicable ASIC forms
- Preparing and lodging the CSF Notification form
- Preparing and lodging 1 ASIC form 484 with the applicable CSF details
If you would like a consultation on your options going forward for your CSF Notification, you can reach us at 1800 730 617 or firstname.lastname@example.org for a free, no-obligations chat.
Get your FREE quote now.
We'll get back to you within 1 business day.