A court may, in its judicial discretion, order that a party to proceedings pay security for costs which may be incurred by their opponent(s). Costs in this sense refers to the legal costs incurred in litigating a dispute. Where a party fails to oblige an order for security for costs the proceedings will generally be stayed until that party’s compliance is forthcoming. These types of orders a generally granted where there are some prospects of a party failing to pay an order for costs at the conclusion of the litigation. [Read more…]
securities
Share vesting agreements – could compulsory acquisition be a penalty?
12 January 2015 by
In the Australian start-up community, we appear to have adopted most of the terminology from the United States, notwithstanding that the laws in relation to shares, options, loans (Securities) are completely different. One such “imported term” is the “Vesting Schedule” which is commonly utilised in a Share Vesting Agreement. The principle is simple enough, individuals contribute to a start-up (Startup) work to build a product or service and are given equity in the business (Company) in exchange for their efforts (Sweat for Equity Deal). A Share Vesting Agreement will usually contains a Vesting Schedule which describes the rights and obligations of the participants by which their Securities vest, or are cancelled if the person fails to achieve certain milestones. Whilst Securities is a broader term, generally in the case of start-ups we refer to various classes of shares in a proprietary limited company incorporated under Australian law.
Prohibition on the acquisition of a relevant interest
29 April 2014 by
Section 606 of the Corporations Act 2001 (Cth) (Corps Act) contains a prima facie prohibition against the acquisition of relevant interests in voting shares.
How big does your company need to be to list on the ASX?
19 July 2011 by
Last updated 21 May 2016
For many organisations, achieving an exit for its members via a listing of its securities on the stock exchange may be highly desirable, but for the uninitiated, it can be a complex and somewhat daunting process. A consultation paper released by the ASX on 12 May 2016 proposes changes to these criteria. Read our summary of the proposed changes to the eligibility requirements. [Read more…]
What do Shareholders’ Agreements protect against?
14 July 2011 by
A Shareholders Agreement is a contract that attempts to regulate the rights and obligations of Shareholders or Members (used interchangeably) in the context of their ownership of securities in a Company. [Read more…]
