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 whom 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.
What benefits and services does the company offer to their customers and prospects?
Accountants could offer an overview of the key legislation that relates to company directors.
There is an opportunity for accountants to mentor new directors on corporate governance processes, including:
- A working knowledge of the company’s Constitution.
- Ensuring that adequate processes and systems have been implemented for:
- appointment of the managing director/chief executive officer
- systems for:
- asset acquisition
- development and protection of intellectual property
- accounting
- debtors
- inventory
- creditors
- bank accounts
- Workplace Health & Safety
- Human Resources/Fair Work Australia
- Risk Management
- Environmental Laws
- Cashflow Management
- Not trading whilst insolvent
There are many other matters with which many directors of these new types of companies will require assistance. This is a great opportunity for accountants to develop a new product stream – “Corporate Governance Reviews for Directors”.
ESS BIZTOOLS offers accountants a full range of material to assist with corporate governance mentoring to assist small/medium enterprise operators to take the big step of becoming a “de facto public company” within the ESS BIZTOOLS’ Gold Package.
ESS BIZTOOLS’ Gold package includes a range of products to assist accountants/advisors in advising clients on the new capital raising opportunities for small/medium enterprises.
Why not take advantage of the special new financial year discount of 25% making the twelve months 24/7 subscription only $2,227.50 including GST for a one office subscription? Click here for more information.
Peter Towers | ESS BIZTOOLS
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