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

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news