SCHEDULES

SCHEDULE 2F1... share incentive plans

Annotations:
Amendments (Textual)
F1

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)

Part 9Trustees

Establishment of trustees

71

1

The plan must provide for the establishment of a body of trustees consisting of persons resident in the United Kingdom (“the trustees”).

2

The plan must provide that the trustees are required—

a

in the case of free or matching shares, to acquire shares and appropriate them to employees in accordance with the plan,

b

in the case of partnership shares, to apply partnership share money in acquiring shares on behalf of employees in accordance with the plan, and

c

in the case of dividend shares, to apply cash dividends in acquiring shares on behalf of participants in accordance with the plan.

3

The functions of the trustees with respect to shares held by them must be regulated by a trust (“the plan trust”)—

a

which is constituted under the law of a part of the United Kingdom, and

b

the terms of which are embodied in an instrument which complies with the requirements of this Part of this Schedule (“the trust instrument”).

4

The trust instrument must not contain any terms which are neither essential nor reasonably incidental to complying with the requirements of this Part of this Schedule.

5

The trust instrument may contain terms that—

a

define who is a professional trustee and who is a non-professional trustee;

b

require the trustees to include at least one person who is a professional trustee and at least two who are non-professional trustees;

c

require at least half of the non-professional trustees to have been, before being appointed as trustees, selected in accordance with a specified process of selection;

d

require the trustees so selected to be persons who are employees of the company or, in the case of a group plan, of a participating company.

6

The terms mentioned in sub-paragraph (5) are to be regarded as reasonably incidental to complying with the requirements of this Part of this Schedule for the purposes of sub-paragraph (4).