When hiring contractors, it is important to distinguish whether a person is a contractor or actually considered an employee, as there are certain taxation, superannuation and workers compensation rules attached to hiring employees as opposed to contractors.
The company must issue a prospectus (or with ASX’s agreement, an information memorandum if the company is undertaking a compliance listing without raising capital) before it can be listed on ASX.
When an offer of new securities is made to Australian retail investors, a prospectus (which has been lodged with ASIC) must be issued to investors.
A prospectus (or other disclosure document) is also required for secondary sales of previously issued securities in certain circumstances. The “on-sale” provisions contained in the Corporations Act (which impose this disclosure requirement) are intended to prevent companies or sellers from avoiding the prospectus requirements by issuing or selling their shares to sophisticated and professional investors only (who do not ordinarily require a disclosure document) only for those purchasers to “on-sell” those shares to retail investors.
