"Ask the Team": Can we vary the terms of our EMI options without losing the tax benefits?

Resource type: Legal update: archive

Status: Published on 17-Apr-2007

Jurisdiction: United Kingdom

This week's question comes from a finance director of a small company running an EMI scheme. One of the investors is selling out to a new shareholder and the board want executives with EMI options to be able sell some shares to the new shareholder too. The problem is that according to the scheme rules, the EMI options cannot be exercised for another few years. Can the terms of the option be changed to allow the executives to exercise some of their options early?

PLC Incentives will be publishing standard EMI option rules and an EMI agreement on 1 May.

Since this piece was first published we have revised it to make it clear that HMRC do not agree with one of the approaches suggested here.

For more about this resource, see 'Ask the Team'.
PLC Incentives

Register for free access

To access this resource and thousands more, register for a free, no-obligation trial of Practical Law. Register using the button below, telephone +44 (0)20 7202 1220 or e-mail info@practicallaw.com.

A free trial will give you:

✔ Unlimited access to Practical Law online know-how
✔ Thousands of market standard documents and clauses
✔ Daily alerts and weekly update e-mails on key legal developments in your practice area
 

Register

Log in

To access this resource, log in below or register for free access.

Contact us

Our customer services team are available every working day 8.30am to 7pm (GMT).

Actions
Resource information
Show resource details Hide resource details
  • Resource ID: 3-282-9954
  • Published: 17-Apr-2007
  • Products:  PLC UK Share Schemes & Incentives
Ask a question
Print
Related content
Related content
Topics
  • EMI OptionsEMI Options (http://publicsector.practicallaw.com/9-318-9952)
Practice note: overview
Standard documents
Legal update: archive
{ "siteName" : "PLC", "objType" : "PLC_Doc_C", "objID" : "1247246805985", "objName" : "Ask the Team Can we vary the terms of our EMI options without lo", "userID" : "2", "objUrl" : "http://uk.practicallaw.com/cs/Satellite/3-282-9954?source=relatedcontent", "pageType" : "", "contentAccessed" : "false", "analyticsPermCookie" : "2-12b281d6:13ebdd7a62e:-c0d", "analyticsSessionCookie" : "2-12b281d6:13ebdd7a62e:-c0c", "statisticSensorPath" : "http://analytics.practicallaw.com/sensor/statistic" }