SCHEDULES
SCHEDULE 2Approved share incentive plans
Part 8Cash dividends and dividend shares
Reinvestment: amounts to be carried forward
68
1
This paragraph applies where an amount is not reinvested—
a
because the amount of the cash dividend to which the participant is entitled is not sufficient to acquire a share, or
b
because there is an amount remaining after acquiring one or more dividend shares on the participant’s behalf.
2
The amount may be retained by the trustees and carried forward to be added to the amount of the next cash dividend to be reinvested.
3
If so retained, the trustees must hold the amount so as to be separately identifiable for the purposes of sub-paragraphs (4) and (5).
4
An amount retained under this paragraph must be paid over to the participant—
a
if or to the extent that it is not reinvested within the period of 3 years beginning with the date on which the dividend was paid, or
b
if during that period the participant ceases to be in relevant employment (see paragraph 95), or
c
if during that period a plan termination notice is issued in respect of the plan (see paragraph 90).
5
An amount required to be paid over to the participant under sub-paragraph (4) must be paid over as soon as practicable.
6
For the purposes of this paragraph an amount carried forward under this paragraph derived from an earlier cash dividend is to be treated as reinvested before an amount derived from a later cash dividend.