Accountants, are you adding value to company directors?
With Crowd-Sourced Funding Equity Raising, available from 29th September 2017, now is an appropriate time to consider how accountants can help mentor small/medium enterprises for the challenges that company directorship presents.
The Australian government expects thousands of companies to take the opportunity to raise capital from the public over the next twelve months.
In the first phase (at least) of Crowd-Sourced Funding Equity Raising, the eligible entities will be unlisted public companies with a requirement of three directors.
Whilst many small/medium enterprise operators are company directors, the vast majority of them have never had the responsibility of stewardship of money invested in their companies by people who many of them will not know.
Crowd-Sourced Funding Equity Raising and Early Stage Innovation Companies offer businesses tremendous opportunities to add value, but also brings a whole new group of directors potentially into the full glare of public and governmental scrutiny.
ASIC and other government agencies will be closely observing this significant opportunity being given to small business – too many mistakes and the legislation will undoubtedly be tightened to make the whole process far more difficult for smaller companies to raise capital.
What can accountants do to assist company directors, from a small/medium enterprise background, master this process? Offer support to directors by presenting seminars on the “Role of a Director in Small/Medium Business” including encouraging directors to develop an “elevator pitch” on their company’s ambitions and why investors should want to join them in their business.