(Image: AAP/David White)

The very same mum and dad shareholders who delivered Scott Morrison three more years in office last year on the strength of their franking credits are now being shafted by the big end of town, after Treasurer Josh Frydenberg agreed to change Australia’s capital raising rules

After lobbying by the ASX, ASIC and some corporate lawyers close to Wall Street investment banks, the government last month agreed to a temporary rule change where ASX-listed companies can now place up to 25% of their shares with non-shareholders, up from the previous limit of 15%.

It’s an emergency measure due to the COVID-19 crisis and has triggered a wave of new capital raising deals as companies battle to survive.