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Jake Berger

Explained: The changes to liquidity and share valuations under employee share schemes

Jake Berger
6 minute Read

Changes to corporation law disclosure requirements for Employee Share Schemes (ESS) were revealed in the 2022 budget. 

Among the changes are the ability to offer more meaningful amounts of equity, including lifting the maximum cap from $5000 per year per participant to $30,000, as well as a simplified regulatory regime and a relaxation of disclosure rules.

While these legal changes are welcome and will assist employers, there remain significant hurdles for private companies that remain unresolved.

Viable solutions are urgently needed to minimise private companies turning their backs on ESS’s altogether.

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