In recognition of the difficult economic conditions facing
companies, in particular their restricted access to debt markets,
ASIC has released Consultation Paper 105: Facilitating equity
capital raising. The consultation paper considers measures which
may be implemented to facilitate capital raising by building on
existing exemptions in the law and removing certain regulatory
In the consultation paper ASIC indicates that it is proposing
remove the requirement that the issue price for interests in a
managed investment scheme issued under a placement is not more than
a 10% discount to the current market price of interests in the same
class without member approval
allow case-by-case relief to permit rights issues and secondary
sales without a full prospectus even though the entity has been
suspended from trading for more than five days in the past 12
grant class order relief to enable listed entity members to be
able to take up any shortfall in rights that other members have not
accepted under a rights issue using a shortfall facility. It is
proposed that the relief would allow members to exceed the takeover
thresholds as a result of participating in the shortfall facility.
Additionally, ASIC proposes to grant class order relief from the
takeover provisions for accelerated rights issues
grant class order relief to enable an underwriter of a dividend
reinvestment plan to take up any shortfall under that dividend
reinvestment plan, even if by doing so it exceeds the takeover
The proposals are aimed at enabling companies to quickly raise
funds in a challenging market, while maintaining investor
ASIC has indicated that in considering the implementation of the
proposals, the overriding factors to be considered will be
the market is fully informed at all relevant times
investors are fully informed before they agree to buy
retail investors are able to participate in the equity capital
raising to the extent it is possible and at a fair price
there is minimal risk of any unacceptable transfer of control
resulting from the equity capital raising.
Comments on the consultation paper are due by 30 March
2009. Please contact us if you would like any further
An actuarial review of the Invensys Australia Superannuation Fund showed it to be in surplus to the tune of $189.2 million. In mid 2003, the Invensys Group proposed to the trustee that the surplus be repatriated to the principal employer in the group.
Lenders in New South Wales breathed a sigh of relief earlier this month when the Supreme Court ruled in Bank of Western Australia Ltd v. Primanzon  NSWSC 862 that two part-time commercial property investors could not claim relief under the Contracts Review Act 1980 (NSW) because the loans advanced to them were entered into in the course of a trade, business or profession carried on by them.
A key aspect of an innovation culture is keeping it active at all levels of management, from teams to board meetings.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).