January 7, 2020

CSF offer must be for ordinary shares

Photo by Chris Liverani on Unsplash

CSF offer must be for shares

7 January 2020

In addition to other requirements when a CSF offer is made, your company's CSF offer must be an offer of fully-paid ordinary shares.

And, the CSF intermediary is a single platform that may publish a CSF’s offer. 

Fully paid shares

The company’s CSF offer must be for fully-paid ordinary shares and not other types of securities like partly-paid shares or preference shares. 

No sale or transfers

The offer may be for an issue of shares but not the sale of shares or a transfer or sale of shares that have already been issued.

Sale restriction

Investors are not able to sell shares purchased under a CSF offer within 12 months of their issue without a prospectus or other disclosure document, unless an exemption in s. 708 of the Corporations Act applies (e.g. sales to sophisticated or professional investors) or unless ASIC gives relief.

Do you have questions or comments about CSF offers? Be sure to leave them below. 


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About the author 

Vivian Michael

As founder and lawyer at Michael Law Group, CPA and owner of a business consultancy, Vivian is well-positioned to advise Australia's top entrepreneurs. Entrepreneurs benefit from Vivian's commercially focussed legal advice, business experience, and commitment to deliver the best quality business legal services to entrepreneurs, wherever they may live in the globe.

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