Employee Share Schemes - ASIC´s Latest Amendments

For the first time since 1995, the Australian Securities and Investments Commission ("ASIC") has released an update of its policy relating to Employee Share Schemes ("ESS") and the relief ASIC will give such schemes from the disclosure (prospectus) and licensing provisions of the Corporations Act ("Act"). The updated policy was released on 1 May 2003 and the main principle remains the same - assisting employers to offer shares where the aim of the share offer is not fundraising but rather enabling employees to participate in the ownership of a corporation. A large part of ASIC's policy rationale is to encourage offers where they support the long term mutual interdependence between employers and employees, provided adequate disclosure has been made to investors.