As part of the Dynamic Business "Let's Talk" series, Sierra Legal Senior Associate Kenneth Gitahi shares his thoughts on going public:

“A proprietary (or private) company may consider going public (that is, converting to an unlisted public company) to make it easier to raise capital from the general public.  However, this benefit needs to be weighed against the increased regulatory and cost burdens that apply to public companies.

The requirement to hold an AGM, appoint an auditor and prepare audited financial reports, are among the key regulatory and cost burdens that public companies face.  Public companies also pay a much higher annual registration fee and they must have at least 3 directors and at least 1 company secretary.  Removing a director of a public company can only be done at a general meeting by shareholders (and not by directors).  Removing an auditor requires ASIC’s consent.

Even greater regulatory burdens are faced by public companies listed on a stock exchange, which must also comply with the rules of the stock exchange.

Seeking independent professional advice before going public is vital.”

Read more of the discussion from business owners and entrepreneurs here - https://dynamicbusiness.com.au/featured/lets-talk-taking-your-company-public-with-an-ipo.html