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Welcome back to another day of insights
Today’s brief:
Tribunal clears ex-KWM partner of kiss claim
Students ditch uni for AI-fuelled start-ups
Uber unfairly deactivates its driver
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WORD ON THE STREET
Kiss claim cleared

Darren Roiser, former KWM London managing partner, has been cleared of misconduct after denying he initiated a kiss with a paralegal during a 2020 work night out. He told the tribunal she came onto him and that he “pulled away” after realising it was wrong. The Tribunal found the SRA hadn’t proved the kiss was without consent, though Roiser “should have shown better judgment”: Legal Cheek
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Luke Woodward has rejoined the ACCC as Commissioner after 25 years away, filling the seat vacated by Liza Carver. The ex-KWM partner and former ACCC general counsel will chair the enforcement committee and play a key role in the new merger regime: Point Blank
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Deloitte Australia has officially apologised and will discipline staff after admitting AI caused errors in its $440k welfare report. The firm confessed its “oversight processes weren’t followed” and has repaid part of its fee. The revised version of the report fixed fake references and a made-up citation: AFR
PRACTICE POINTS
Uber loses FWC fight
In Hotak v Rasier Pacific Pty Ltd, the Fair Work Commission found Uber unfairly deactivated a driver. Mr Hotak’s account was shut down after Uber alleged he was involved in a physical altercation with passengers. He denied this, saying he’d asked them to stop using drugs in his car and was assaulted instead. Uber later reactivated his account and argued that meant the case was over. The Full Bench disagreed, saying that it would “incentivise tactical reinstatements” to avoid scrutiny. It found no valid reason for the deactivation and ruled Uber had breached the new unfair deactivation laws for employee-like platform workers. The Commission ordered a formal reactivation and that Mr Hotak be restored to the position he’d have been in but for the deactivation, including lost pay: Piper Alderman
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The Victorian Court of Appeal has handed down the first real take on s 596AB, and it tightens the screws on intent. Basically, directors sold the business, leaving about $3.9m in unpaid entitlements. The Fair Entitlements Guarantee (FEG) Scheme stepped in and paid $3.4m, which mattered. The Court said FEG payments count as “recovery”, so prosecutors must prove a purpose to stop recovery altogether, not just that the company couldn’t pay. If directors expected FEG to meet entitlements, that expectation can defeat the “intent” limb. For boards and advisers, the practical is simple: document why the deal makes sense, how entitlements will be met, and who pays: Worrells
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Justice Beach of the Federal Court confirmed that altering or releasing security for consideration can be a “compromise” under s 477(2A) of the Corps Act. If a deal needs a mortgage or GSA released to close, liquidators should treat it as a compromise and get court or creditor approval where the commercial value tops $100k. Taking a commercial lens, Beach J says changing or giving up security affects recoverability and can be more fundamental than tweaking principal, interest or term. If there’s doubt, assume s 477(2A) applies. But there’s a helpful kicker in that courts may forgo the merits of a compromise advice where reasons are purely commercial, no litigation is on foot, and cash is tight. G+T reckons best practice is to seek approval in uncertain cases: G+T
TALKING POINTS
Gen Z’s quit uni

Meet the new dropout boom. Bradley Cox, Freesia Gaul and Sascha von Papen all quit uni to chase AI-fuelled start-ups. From student startups like Exam Insights to medical startup VPTech, they say universities can’t keep pace with AI’s speed. “Why am I spending $40,000 for a degree that is teaching me nothing, teaching me skills that are obsolete?” says von Papen. Can’t argue with that. For this generation, on-the-job beats on-campus: AFR
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The ATO is stepping up enforcement of anti-avoidance laws targeting professionals (including lawyers) who use family trusts to divert income to spouses or kids and dodge tax. A new compliance guide due in November will tighten scrutiny on personal services income, with audits expected next year. Experts warn the move could hit small firms hardest, as the ATO tests the line between legitimate structures and tax avoidance: AFR
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DEAL ROOM
Mayne battles MAC claim
Mayne Pharma: is fighting to keep Cosette Pharmaceuticals bound to its $672m takeover, with Justice Black to rule next week on a “material adverse change” escape bid. Cosette claims Mayne’s February forecasts inflated earnings, but Noel Hutley SC hit back, calling it “a kind of divine internal tension” - Cosette can’t use the same forecasts to argue both a MAC and misleading and deceptive conduct: Capital Brief
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Nine: is back eyeing Quadrant’s outdoor ad group QMS, which is being prepped for sale after spinning off its NZ radio arm. Sources say Nine’s revisiting a potential $900m deal, though investors may baulk at another traditional media buy. Fresh off its $1.4bn Domain windfall, CEO Matt Stanton faces pressure to prove he’s got a next move: The Australian
SECTOR SPECIFIC
AI fuels solo founders

🚜 DIGGERS
It’s 6 for 6 at MinRes. Chris Ellison has lost another ally as Zimi Meka becomes the sixth director to quit MinRes in six months. Only three of last year’s nine directors remain as chairman Malcolm Bundey pushes a sweeping governance clean-up. Bundey has also removed Ellison’s CFO ally Mark Wilson and is eyeing asset sales to rein in $5.4bn in debt: AFR
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The Albo government is in talks with miners on a plan to set minimum prices for critical minerals and fund new rare-earth projects under a proposed $1.2bn strategic reserve. The move, part of a potential resources pact with the US, aims to counter China’s supply dominance as Trump’s tariff threats reignite trade tensions: Bloomberg
🏦 FIN
JPMorgan Chase staff will need to scan their fingerprints or eyes to enter the bank’s new New York headquarters, replacing ID badges. The bank initially planned for voluntary registration but now says it’s mandatory, citing security and convenience. About 10,000 employees will move into the building by year-end: FinExtra
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A whistleblower claims Brookfield Asset Management killed a proposed $US75–100m Hyundai investment against the wishes of super fund Cbus, its sole advisory committee member. The whistleblower alleges the decision cost the fund and was driven by Brookfield’s internal “cash crunch.” Brookfield calls the claims “baseless,” saying the whistleblower's wrongful termination suit is without merit: The Australian
🏠 RETAIL & REAL ESTATE
After years of setbacks, Golden Age has completed Melbourne’s “unluckiest” office tower at 130 Little Collins Street, two years late and after two builders collapsed - Probuild in 2022 and Roberts Co earlier this year. Developer Jeff Xu called it his “most challenging” project, but said the result “redefines the modern workplace”: AFR
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Developer Conquest has lodged plans for a $900m mixed-use precinct on the former Cyprus Community Club site in Stanmore, featuring 500 apartments above a new Queensbridge Shopping Centre. If approved, construction will begin in 2026 with completion targeted for mid-2028: AFR
📱 TECH & STARTUPS
AI is rewriting startup rules as solo founders use tools like ChatGPT to build products and raise millions without co-founders. Sam Altman and other tech leaders even have a betting pool on when the first one-person billion-dollar company will emerge. But sceptics like Paul Graham warn startups are too “emotionally brutal” to go it alone: Capital Brief
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Institutional investors have hit back at proxy advisers ISS and Glass Lewis for urging a strike on Xero CEO Sukhinder Singh Cassidy’s $23.5m pay, saying the tech firm must offer US-style compensation to compete globally. Proxy firms compared her to ASX peers, not global rivals like Intuit and Sage. Fund managers called the proxy backlash “out of touch” with market realities: AFR
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