There is a regulatory restriction on the issue of securities by a co-operative outside its ‘home’ jurisdiction. The reasons for this are bound up in the complexity of a federal regulatory system. Suffice to say that where a co-operative’s target community of members or investors extends across a state or territory border, it may be necessary to examine whether such an offer will attract the disclosure requirements under Chapter 6D of the Corporations Act, and if so whether it is appropriate to seek an exemption from ASIC.
If the offer is likely to extend in this manner, a co-operative should obtain professional assistance to advise on the impact of the Corporations Act.
It is not intended that this Handbook deal with the requirements of such an offer. This is partly because each offer that possibly requires consideration of this issue will be different and such complexity is beyond the scope of this resource as a plain English resource for communities.