virgin-australia-plane
(Image: AAP/Darren England)

The ASX, ASIC and the Federal Government yesterday revealed they have agreed to loosen Australia’s already highly flexible capital raising rules in order to help our 2200 ASX listed companies get through the corona crisis.

The specifics are that from today until July 31, companies will be able to issue 25% of their ordinary voting stock to non-shareholders at whatever discount the directors believe is appropriate without shareholder approval in any 12 month period.

The current limit for ASX 300 companies is 15%, but New Zealand moved to 25% during the GFC as a temporary measure and never came back.