SCHEDULES

SCHEDULE 2Approved share incentive plans

Part 9Trustees

Duty to give notice of award of shares etc.

75

1

The trust instrument must make the following provision regarding notices.

2

It must provide that, as soon as practicable after any free or matching shares have been awarded to an employee, the trustees must give the employee notice of the award—

a

specifying the number and description of those shares,

b

stating their market value on the date on which they were awarded to the employee, and

c

stating the holding period applicable to them.

3

It must provide that, as soon as practicable after any partnership shares have been awarded to an employee, the trustees must give the employee notice of the award—

a

specifying the number and description of those shares,

b

stating the amount of partnership share money applied by the trustees in acquiring the shares on behalf of the employee, and

c

stating their market value on the acquisition date (as defined by paragraph 50(4) or, if there is an accumulation period, by paragraph 52(5)).

4

It must provide that, as soon as practicable after any dividend shares have been acquired on behalf of a participant, the trustees must give the participant notice of the acquisition—

a

specifying the number and description of those shares,

b

stating their market value on the acquisition date (as defined by paragraph 66(4)),

c

stating the holding period applicable to them, and

d

informing the participant of any amount carried forward under paragraph 68 (reinvestment: amounts to be carried forward).

5

It must provide that, where any foreign cash dividend is received in respect of plan shares held on behalf of a participant, the trustees must give the participant notice of the amount of any foreign tax deducted from the dividend before it was paid.

6

In sub-paragraph (5) “foreign cash dividend” means a cash dividend paid in respect of plan shares in a company not resident in the United Kingdom.