32(1)Free or matching shares may be subject to provision for forfeiture—U.K.
(a)on the participant ceasing to be in relevant employment at any time in the forfeiture period,
(b)on the participant withdrawing the shares from the plan at any such time, or
(c)in the case of matching shares, on the participant withdrawing from the plan at any such time the partnership shares in respect of which those shares were awarded.
(2)Sub-paragraph (1)(a) does not, however, authorise the making of provision for forfeiture on the participant ceasing to be in relevant employment—
(a)because of injury or disability,
(b)on being dismissed by reason of redundancy,
(c)by reason of [F1a relevant transfer within the meaning of the Transfer of Undertakings (Protection of Employment) Regulations 2006] ,
(d)if the relevant employment is employment by an associated company (see paragraph 95(2)), by reason of a change of control or other circumstances ending that company’s status as an associated company,
(e)by reason of the participant’s retirement on or after reaching the specified retirement age (see paragraph 98), or
(f)on the participant’s death.
(3)Forfeiture may not be linked to the performance of any person or persons.
(4)The same provision for forfeiture must apply in relation to all free or matching shares included in the same award under the plan.
(5)In this paragraph “the forfeiture period” means the forfeiture period specified in the plan, which must be a period of not more than 3 years beginning with the date on which the shares were awarded to the participant.
Textual Amendments
F1Words in Sch. 2 para. 32(2)(c) substituted (6.4.2006) by The Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246), reg. 1(2), Sch. 2 para. 12(3) (with reg. 21(1))