SCHEDULES
SCHEDULE 4Approved CSOP schemes
Part 5Requirements etc. relating to share options
21Requirements etc. relating to share options: introduction
1
A CSOP scheme must meet the requirements of—
paragraph 22 (requirements as to price for acquisition of shares), and
paragraph 23 (share options may not be transferred).
2
A CSOP scheme may make any provision authorised by—
paragraph 24 (exercise of options: ceasing to be director or employee), or
paragraph 25 (exercise of options: death).
22Requirements as to price for acquisition of shares
1
The price at which shares may be acquired by the exercise of a share option granted under the scheme—
a
must be stated at the time when the option is granted, and
b
must not be manifestly less than the market value of shares of the same class at that time.
This is subject to sub-paragraphs (2) and (3).
2
The Inland Revenue and the scheme organiser may agree in writing that sub-paragraph (1)(b) is to apply as if the reference to the time when the option is granted were to an earlier time or times stated in the agreement.
3
The scheme may provide for one or more of the following—
a
the price at which shares may be acquired by the exercise of a share option granted under the scheme,
b
the number of shares which may be so acquired, or
c
the description of shares which may be so acquired,
to be varied so far as necessary to take account of a variation in the share capital of which the shares form part.
4
But the scheme must provide that no such variation is to be made without the prior approval of the Inland Revenue.
23Share options must not be transferable
1
The scheme must ensure that share options granted to a participant are not capable of being transferred by the participant.
2
Paragraph 25 provides for the exercise of the options where the participant has died.
24Exercise of options: ceasing to be director or employee
1
The scheme may provide that an individual may exercise share options under it after ceasing to be a full-time director or qualifying employee.
2
“Qualifying employee” has the same meaning as in paragraph 8 (the employment requirement).
25Exercise of options: death
The scheme may provide that, if a participant dies before exercising the options, they may be exercised on or after the date of death but not later than 12 months after that date.