Document ID: chunk:federal_register_of_legislation:C2014C00751:clause:1_43
Version: federal_register_of_legislation:C2014C00751
Segment Type: clause
Provision Reference: sch 1 cl 43
Character Range: 69637–71588

43  Sections 208‑205 to 208‑215
Repeal the sections, substitute:

208‑205  Distributions to employees acquiring shares under eligible employee share schemes
  Division 207 also applies to a *franked distribution made by an *exempting entity if:
 (a) the distribution is made to an individual who, at the time the distribution is made, is an employee of:
 (i) the exempting entity; or
 (ii) a *subsidiary of the exempting entity; and
 (b) the employee acquired a beneficial interest in the *share on which the distribution is made:
 (i) under an *employee share scheme; and
 (ii) in circumstances specified as relevant in section 208‑215; and
 (c) the employee does not hold that beneficial interest as a trustee.

208‑215  Eligible employee share schemes
 (1) An individual acquires a beneficial interest in a *share in a company under an *employee share scheme in circumstances that are relevant for the purposes of paragraphs 208‑205(b) and 208‑235(b) if:
 (a) all the *ESS interests available for acquisition under the scheme relate to:
 (i) ordinary shares; or
 (ii) preference shares to which are attached substantially the same rights as are attached to ordinary shares; and
 (b) immediately after the individual acquires the interest:
 (i) he or she does not hold a beneficial interest in more than 5% of the shares in the company; and
 (ii) he or she is not in a position to control, or to control the casting of, more than 5% of the maximum number of votes that might be cast at a general meeting of the company; and
 (c) the share is not a *non‑equity share.
 (2) An individual also acquires a beneficial interest in a *share in a company under an *employee share scheme in circumstances that are relevant for the purposes of paragraphs 208‑205(b) and 208‑235(b) if:
 (a) the share is part of a stapled security; and
 (b) Subdivision 83A‑B or 83A‑C (about employee share schemes) applies to the beneficial interest in the stapled security.