SCHEDULES
SCHEDULE 2F1... share incentive plans
Part 5Free shares
The holding period
36
1
The plan must require the company in respect of each award of free shares to specify a period (“the holding period”) during which a participant is bound by contract with the company—
a
to permit the free shares awarded to the participant to remain in the hands of the trustees, and
b
not to assign, charge or otherwise dispose of the beneficial interest in the shares.
2
The holding period—
a
must be a period of at least 3 years but not more than 5 years, beginning with the date on which the shares in question are awarded to the participant, and
b
must be the same for all shares in the same award.
3
The plan—
a
may authorise the company to specify different holding periods from time to time, but
b
must prevent the company from increasing the holding period specified in respect of free shares that have been awarded under the plan.
4
The participant’s obligations with respect to the holding period are subject to—
a
paragraph 37 (power to authorise trustees to accept general offers etc.),
b
paragraph 79 (meeting by trustees of PAYE obligations), and
c
paragraph 90(5) (termination of plan: early removal of shares with participant’s consent).
5
If at any time in the holding period the participant ceases to be in relevant employment, the participant’s obligations with respect to that period come to an end.
Word in Sch. 2 title omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 14, 89 (with Sch. 8 paras. 90-96)