LANSING – The Michigan Senate Banking and Financial Institutions Committee unanimously approved legislation Thursday that would allow businesses seeking investors through crowdfunding to avoid having to register the stocks sold to those investors.
No major changes were made in the S-2 substitute for HB 4996 , which would allow companies to seek up to $1 million through small investors, or up to $2 million if they have posted certified financial statements for their most recent complete fiscal year. No investor would be able to contribute more than $10,000 unless he or she qualified under federal rules.
The $10,000 limit would be adjusted every fifth year for inflation.
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