SCHEDULES

C2SCHEDULE 5 Employee Share Ownership Trusts

Annotations:
Modifications etc. (not altering text)
C2

Sch. 5 applied (6.3.1992 with effect as mentioned in s. 289(1)(2) of the applying Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 228(7), 235(8), 289 (with ss. 60, 101(1), 171, 201(3))

Trustees’ functions

C15

1

The trust deed must contain provision as to the functions of the trustees.

2

The functions of the trustees must be so expressed that it is apparentthat their general functions are—

a

to receive sums from the founding company and other sums (by way of loanor otherwise);

b

to acquire securities;

c

to transfer securities or sums (or both) to persons who are beneficiariesunder the terms of the trust deed;

F1cc

to grant rights to acquire shares to persons who are beneficiaries under the terms of the trust deed;

d

to transfer securities to the trustees of profit sharing schemes approvedunder Schedule 9 to the Taxes Act 1988, for a price not less than the pricethe securities might reasonably be expected to fetch on a sale in the openmarket;

e

pending transfer, to retain the securities and to manage them (whether byexercising voting rights or otherwise).