Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Crowd Funding, Small Offers and the Takeovers Code

Crowd Funding, Small Offers and the Takeovers Code

Phase 1 of the Financial Markets Conduct Act 2013 (the “FMC Act”) came into effect on 1 April 2014.

The FMC Act introduces a number of new exclusions from disclosure for offers of financial products. Some exclusions, such as for crowd funding through licensed intermediaries and for “small offers”, are aimed at making it easier for small and medium sized companies to raise capital.

“Companies taking advantage of the exclusions from disclosure under the FMC Act to raise capital need to be aware that they could become, or may already be, subject to the Takeovers Code and to other regulatory regimes in doing so”, the Chairman of the Takeovers Panel, Mr David Jones, said today.

A company becomes subject to the Takeovers Code as soon as it has 50 or more shareholders (holding voting shares) and 50 or more share parcels. The Panel is not averse to companies deciding to structure their holdings so that they do not fall under the definition of “Code company”, provided that the structuring is undertaken in a manner that complies with the Takeovers Code (see paragraph 25 of the Panel’s Guidance Note for Small Code Companies).

“Issuers of securities under the FMC Act may wish to seek advice from a lawyer experienced in takeovers and corporate structuring if they are in doubt as to how the Takeovers Code might impact on them” said Mr Jones.

Licensed intermediaries offering crowd funding services can help by encouraging issuers to take specific legal advice on this point.
ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Starts Talks On Tougher Rules For Property Speculators

The Reserve Bank of New Zealand is stepping up preparations to restrict lending to residential property investors as it watches house prices, particularly in Auckland, continue to rise strongly. More>>

ALSO:

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news