The Securities and Exchange Commission (SEC) is seeking public comments on the proposed exemption from filing application or registration statement for the offering of shares issued by social enterprises.
The proposal is to alleviate obstacles in such securities offering and encourage private sectors and the public to participate more in national development in line with the government's policy, according to the SEC’s press release yesterday.
The SEC is proposing to issue regulations that would exempt social enterprises from filing the application and the registration statement for public offering, provided that their operation complies with public policy and pre-determined criteria.
This exemption rule would facilitate social enterprises in raising fund for their operation to achieve the objectives of promoting employment or solving social problems and developing the well-being of the community, society, public health or the environment, without pursuing the highest returns for shareholders. Since the rule would require that social enterprises be certified or registered and subject to inspection by relevant governmental agencies, strict supervision imposed on limited companies or public limited companies should not apply. This would allow such social enterprises to achieve their intended outcome, according to the release.