The former head of billionaire Nathan Tinkler's Aston Resources has begun a $157 million legal case against the company.
Hamish Collins claims he is entitled an 'equity participation' worth $157.44 million from Aston Resources, the equivalent to five per cent of the value of the company's main mining assets.
Solicitors acting for Mr Collins have filed proceedings in the NSW Supreme Court relating to his alleged entitlement, Aston said on Thursday.
Mr Collins was chief executive of Aston Resources from 2008 to 2010.
He departed the company before its public listing on the Australian Securities Exchange (ASX) to head MM Mining, an unlisted company within the Tinkler Group.
His tenure there ended in September 2011.
Mr Tinkler is the chairman of Aston Resources and major shareholder.
Former National Party leader Mark Vaile is Aston's deputy chairman.
The company has said it acted properly and in a way that was consistent with Mr Collins' terms of employment.
"Aston Resources intends to vigorously defend these proceedings," it said on Thursday.
AAP