From jmalegal.com.au: When shares in a private company with landholdings are cancelled, the shareholder who remains may incur a liability for landholder duty if their ownership interest increases as a result.

In the case reviewed, the cancellation of Chris’ shares in Blue Steel Pty Ltd led to Ana acquiring a significant interest, which triggered landholder duty liabilities based on the company’s land value.

The cancellation occurred before any divorce settlement, preventing reliance on exemptions that would otherwise apply under the Family Law Act.