It's time to get personal.
Recent postings will show that I am on a funding round. It's part and parcel of the 'going global' strategy. And I am learning fast.
It's one thing to find a potential investor in NZ. It is another to identify if they are 'eligible'. The rules determining this are laid down by the Securities Act 1978. To participate and be 'eligible', investors need to be either:
a) persons who can provide certification by an independent chartered accountant that they have net assets of at least NZ$2 million or had a gross income for each of the last two financial years of at least NZ$200K per year, or
b) persons who can provide certification by an independent financial service provider that, as a result of having experience of investing money, they are able to assess the merits and certain other matters in respect of investment such as etc. etc.
The rules make sense. They do provide some level of investor and investee (not sure this is actually a word) protection. However, a quirk in New Zealand's taxation system arises. Because individuals and trusts are taxed at different rates, my own guess is that some potential investors under Category a) will be asset rich (via a trust) and cash poor. That's how tax planning sometimes works. So we are digging deeper into this.
In the Great Depression of the 1920's, the signs said, 'Can you spare a dime?'. I'm working on the 2008 equivalent. The Securities Act 1978 adds a whole new dimension.
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