Commercial Law - Facilitating Transfer of Shares Between Businesses and Investors?

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30 April 2016
This question has a few layers so I apologise in advance if its a little confusing.

I am wondering under Commercial Law whether or not a business would require an AFSL if it intends to serve as an intermediary to bring private companies and their members together with outside investors (sophisticated only) for the purpose of both equity and/or debt funding. This may or may not entail quoting buy/sell prices. My initial belief is that it qualifies the criteria and would require the licence.

The second part is if the company sought to perform private issues, what are the restrictions around advertising and marketing (s734) to a list of sophisticated investors and would that breach its ability under s708(2)? The reason is because is a further point (iii) it mentions that the "person" can indicate themselves interested in such offers (and would the subscription to a list be sufficient indication).

The final part is that if I as an original member (shareholder) wishes to sell my shares to a third-party (sophisticated investors) outside of the standard transfer of form would anything else be required, on behalf of the selling and buyer?

Thanks and very much appreciated!

Michael T

Well-Known Member
9 April 2014
Have a read of the following (and perhaps a chat to ASIC) about whether an AFSL would be required:

You second point requires legal advice from a lawyer about your specific circumstances.

Your third part depends on any constitution and/or shareholders agreement as to whether there are any other requirements, other than completing your ASIC forms.