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Does your start-up meet the ESIC tax-offset criteria?
Federal government introduced the Tax Laws Amendment (Tax Incentives for Innovation) Act 2016 (Cth) to provide tax incentives for investors in an eligible early stage innovation company (ESIC), including 20% up-front non-refundable tax offset and capital gains tax (CGT) exemption for all types of investors meeting criteria.
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Valuing ESS Interests
A company, whether listed or unlisted, can grant its employees an interest in its equity (ESS Interest), including through an employee share scheme (ESS) or employee share option plan (ESOP). There are restrictions contained in both the Corporations Act 2001 (Cth) (Corporations Act) and Income Tax Assessment Act 1997 (Cth) (ITAA) that determine the price…
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ESS vs ESOP – what’s the difference?
Employee share schemes (ESS) and employee share option plans (ESOP) are commonly used by corporations to incentivise employees and align performance with company growth by providing them with an interest in the company. While the terms are often used interchangeably, they have distinct legal and structural differences under Australian law. This article explains the key…
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Disputed ESOP – Selak v National Tiles Co Pty Ltd
In the case of Selak v National Tiles, the Vic Supreme Court considered whether a company breached an option agreement governed by the terms of an Employee Share Option Plan (ESOP) by requiring an option holder to execute an undisclosed shareholders’ agreement as a condition of exercising vested options.
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Can a unit trust be wound up by the oppression remedies
The Corporations Act 2001 (Cth) (Corps Act) grants the Courts the power to award remedies under section 233, specifically designed to address situations of oppression within corporate entities under section 232. These remedies, also known as the “Oppression Remedies”, aim to resolve situations where a company’s conduct unfairly prejudices its members or shareholders. While primarily…
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Directors’ obligations to comply with Accounting Standards
Directors are personally liable for ensuring their company operates in accordance with corporate governance and accounting standards. Obligations contained in part 2M.2 and 2M.3 of the Corporations Act 2001 (Cth) (Corporations Act) outline obligations for companies to keep financial records and prepare annual financial and director’s reports. Sections 180 and 344 of the Corporations Act…
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Accounting standards matter: the company’s obligation
Australian accounting standards (Accounting Standards) are often considered solely the domain of auditors and accountants. However, they are a crucial aspect of corporate law and governance in Australia. For directors, officers, and their professional advisers, the key issue is not the technical details of the Accounting Standards, but rather their legal enforceability. A failure to…
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When a thumbs up emoji means accepting an offer
In a time where communication increasingly takes place through text messages and social media platforms, the legal recognition of non-traditional expressions, such as emojis, presents a potential evolution of the doctrine of acceptance in contract law. The 2023 Canadian decision by the Saskatchewan Court of King’s Bench (Court) in South West Terminal Ltd v Achter…
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What is an indemnity clause?
The word indemnity, in its’ legal context, is defined as “legal protection against liabilities arising from one’s actions.” An indemnity clause therefore, represents the contractual embodiment of this definition, serving as a formal mechanism which protects one party from the from the actions or inactions of another. In effect, it enables parties to allocate risk…
Corporate law
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