Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .

PART 7.12 - MISCELLANEOUS  

Division 1A - Employee share schemes  

Subdivision B - Key concepts  

SECTION 1100M   MEANING OF ESS INTEREST  

Bodies corporate included in the official list of a financial market

1100M(1)    
An ESS interest , in a body corporate that is included in the official list of a financial market covered by section 1100K , means any of the following:

(a)    a fully paid share in the body corporate that is in a class of shares that is able to be traded on the financial market;

(b)    a beneficial interest in a fully paid share in the body corporate where the beneficial interest is in a class of interests that is able to be traded on the financial market;

(c)    a fully paid share in the body corporate that is convertible into an interest referred to in paragraph (b) , where the conversion can be made without charge or for a nominal fee;

(d)    a beneficial interest in a fully paid share in the body corporate that is convertible into an interest referred to in paragraph (a) , where the conversion can be made without charge or for a nominal fee;

(e)    a unit in an interest mentioned in any of paragraphs (a) , (b) , (c) or (d) ;

(f)    a fully paid stapled security that is in a class of stapled securities that is able to be traded on the financial market, that consists of 2 or more interests, each of which would separately be:

(i) an ESS interest under any of paragraphs (a) to (e) of the body corporate, or of an associated entity of the body corporate; or

(ii) an ESS interest under paragraph (3)(a) or (b) in a registered scheme, where the responsible entity of the scheme is an associated entity of the body corporate;

(g)    a unit in a stapled security mentioned in paragraph (f) ;

(h)    an incentive right granted in relation to, or an option to acquire, an interest mentioned in any of paragraphs (a), (b), (c), (d) or (f) (the underlying ESS interest );

(i)    any other interest in the body corporate prescribed by the regulations for the purposes of this paragraph.

Meaning of ESS interest in other bodies corporate

1100M(2)    
An ESS interest , in a body corporate to which subsection (1) does not apply, means:

(a)    a fully paid share in the body corporate; or

(b)    a unit in an interest mentioned in paragraph (a) ; or

(c)    an incentive right granted in relation to, or an option to acquire, an interest mentioned in paragraph (a) (the underlying ESS interest ); or

(d)    any other interest in the body corporate prescribed by the regulations for the purposes of this paragraph.

Meaning of ESS interest in a registered scheme

1100M(3)    
An ESS interest , in a registered scheme that is included in the official list of a financial market covered by section 1100K , means:

(a)    an interest in the scheme that is of the same kind as an interest in the scheme that is able to be traded on the financial market; or

(b)    a unit in an interest mentioned in paragraph (a) ; or

(c)    an incentive right granted in relation to, or an option to acquire, an interest mentioned in paragraph (a) (the underlying ESS interest ); or

(d)    any other interest in the scheme prescribed by the regulations for the purposes of this paragraph.

Meaning of incentive right

1100M(4)    
Incentive right , in relation to a security or financial product, means:

(a)    a conditional right to acquire the security or financial product; or

(b)    a conditional right to be paid a cash amount where the amount is determined (wholly or in part) with reference to any of the following:

(i) the price or value of the security or financial product at a particular time;

(ii) the change in the price or value of the security or financial product over a particular period;

(iii) the amount of dividends or distributions paid in respect of the security or financial product at a particular time;

(iv) the change in the amount of dividends or distributions paid in respect of the security or financial product over a particular period; or

(c)    a conditional right to:

(i) acquire the security or financial product; and

(ii) be paid a cash amount where the amount is determined (wholly or in part) with reference to any of the matters mentioned in subparagraphs (b)(i) to (iv).