This article teaches:
- How to test your eligibility for equity crowdfunding;
- Your legal obligations under the Corporations Act; and
- How to preserve the rights of existing shareholders.
Equity crowdfunding is growing in popularity as smaller investors seek to own a slice of promising companies. If you plan on going down the equity crowdfunding path, you need to be aware of the knock-on effects to your company.
This article explains the legal reporting requirements, including how to mitigate the potential dilution of shares in your company, and the need for a shareholders agreement.
Equity crowdfunding opens up a lot of potential capital, but you need to ensure your business is properly prepared for the changes that follow.