SCHEDULES
F1F1SCHEDULE 8
Part IX The trustees
General duties of trustees
71
1
The trust instrument must require the trustees—
a
to dispose of a participant’s plan shares, and
b
to deal with any right conferred in respect of any of his plan shares to be allotted other shares, securities or rights of any description,
only pursuant to a direction given by or on behalf of the participant.
This is subject to sub-paragraph (3) and to any provision made in the plan in accordance with paragraph 73 (meeting PAYE obligations).
2
The plan may provide for participants to give such general directions, to such effect and in such terms, as are specified in the plan.
3
The trust instrument must, in the case of a participant’s plan shares that are free, matching or dividend shares, prohibit the trustees from disposing of any of those shares (whether to the participant or otherwise) at any time during the holding period, unless the participant has at that time ceased to be in relevant employment.
This is subject to—
paragraph 32 (holding period: power to authorise trustees to accept general offers etc.);
paragraph 72 (power of trustees to raise funds to subscribe for rights issue);
paragraph 73 (meeting PAYE obligations);
paragraph 121(5) (termination of plan: early removal of shares with participant’s consent).
4
The trust instrument must require the trustees to pay over to the participant as soon as practicable any money or money’s worth received by them in respect of or by reference to any of his shares, other than money’s worth consisting of new shares within the meaning of paragraph 115 (company reconstructions).
This is subject to—
a
the provisions of Part VII (reinvestment of cash dividends);
b
the trustees’ obligations under paragraphs 95 and 96 (PAYE: shares ceasing to be subject to the plan and capital receipts); and
c
the trustees’ PAYE obligations.
Sch. 8 repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 8 Pt. 1 (with Sch. 7)