Henshaw v Sqribe [2001] NSWIRComm 196

Henshaw v Sqribe [2001] NSWIRComm 196

The fairest method of quantification is to adopt the high-low average market price for the relevant period, reflecting the likely practical benefit to the employee and his selling habits, leading to an order for payment of $US64,902 (after deducting the agreed exercise price) as compensation for lost options.

Jurisdiction
Australia
Judgment Date
31 August 2001
Procedural Posture
Application Under S106 of the Industrial Relations Act 1996 / Judgment
Outcome
Applicant awarded compensation for lost share options based on high-low average market price method.
Legal Topics
['unfair Contract' 'employment Termination' 'share Options' 'compensation Calculation']
['industrial Law'] ['unfair Contract' 'employment Termination' 'share Options' 'compensation Calculation']

Case Brief

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Procedural Posture

Application Under S106 of the Industrial Relations Act 1996 / Judgment

Legal Issues

  1. 1 ['How should compensation for foregone share options be quantified in the context of unfair contract under s106?' 'What is the appropriate method to value lost share options on termination of employment?']

Ratio Decidendi

The fairest method of quantification is to adopt the high-low average market price for the relevant period, reflecting the likely practical benefit to the employee and his selling habits, leading to an order for payment of $US64,902 (after deducting the agreed exercise price) as compensation for lost options.

Court Disposition

Applicant awarded compensation for lost share options based on high-low average market price method.

Orders

  • ['The respondents are to pay the applicant $US64,902 as compensation for lost share options.']