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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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AI businesses should have duty of care
In a recent interview with InnovationAus.com, Victorian Senator Michelle Ananda-Rajah (Senator) emphasised the need to adopt digital duty of care laws for artificial intelligence (AI) companies.[1] As a representative of the ALP and former AI start-up founder, the Senator calls for the proposed digital duty of care to apply to AI companies. If implemented, the…
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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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Federal Court orders winding up of crypto mining investment scheme
The Federal Court of Australia delivered judgment in Australian Securities and Investments Commission v NGS Crypto Pty Ltd (No 5) [2025] FCA 1611, on 18 December 2025 ordering the winding up of two (2) cryptocurrency related entities after finding that they operated an unlicensed financial services business and an unregistered managed investment scheme in contravention…
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Full Court clarifies confidentiality of supplier and contact info
On 10 May 2023, the Full Court of the Federal Court of Australia (Full Court) delivered its judgment in the case of New Aim Pty Ltd v Leung [2023] FCAFC 67 (New Aim v Leung), allowing an appeal concerning alleged misuse of confidential supplier information by a former senior employee. The decision provides guidance on:…
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Online Safety – is your online business a DIS or a RES?
Whether your online business has to comply with the obligations contained in the Online Safety Act 2021 (Cth) (OSA), and related standards and industry codes will largely depend on how your business is classified because of the functionality it provides to end users in Australia.
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Importance of meta data in discovery – Hamlan v Levonix
The recent copyright case of Hamlan Homes Pty Ltd trading as Hamlan Homes and Geelong Homes v Levonix Homes Pty Ltd (No 3) [2025] FedCFamC2G 565 (Hamlan v Levonix)involved a dispute between Hamlan Homes Pty Ltd 006 313 015 (Hamlan) and Levonix Homes Pty Ltd ACN 168 777 384 (Levonix) that provides insight into preservation…
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Accountant liability in shareholder oppression cases
The Corporations Act 2001 (Cth) (Corporations Act) imposes liability on directors where they engage in shareholder oppression.[1] While this is a director’s duty, third parties may also be held liable for the actions of a director or company where they were involved in the oppressive conduct. Internal and external accountants of a company can and…
