Consultation on extending crowd-sourced equity funding (CSEF) to proprietary companies

CSEF has the potential to contribute to the growth of innovative and creative new businesses, and drive a culture of entrepreneurialism, which will be key to Australia’s long-term economic growth. However, in its submission, the AICD recommends the government consider imposing stronger investor protections through the extension of audit requirements to all proprietary companies with CSEF shareholders. The AICD has also recommended the government conduct a three year review of the CSEF scheme and particularly the investor protection mechanisms, to ensure the scheme is operating fairly and effectively.