ASIC issues first crowd-sourced funding regime stop order

When the prospectus does not meet CSF law

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In summary:

1. ASIC took action in relation to Hirehood’s use of a nominee arrangement.
2. This arrangement did not permit investors to directly acquire ordinary shares in Hirehood.
3. Instead, shares issued by Hirehood were intended to be held by a related party of the intermediary, as nominee on bare trust for the shareholders.
4. For an offer to be valid under the current CSF regime, only fully paid ordinary shares can be offered.
5. Hirehood’s nominee arrangement resulted in investors holding only an equitable interest in the fully paid ordinary shares, rather than full legal and equitable ownership rights normally associated with the ownership of ordinary shares.