Part 5Enterprise investment scheme

Chapter 4The issuing company

The requirements

186AF1The number of employees requirement

1

If the issuing company is a single company, the full-time equivalent employee number for it must be less than 50 when the relevant shares are issued.

2

If the issuing company is a parent company, the sum of—

a

the full-time equivalent employee number for it, and

b

the full-time equivalent employee numbers for each of its qualifying subsidiaries,

must be less than 50 when the relevant shares are issued.

3

The full-time equivalent employee number for a company is calculated as follows—

Step 1

Find the number of full-time employees of the company.

Step 2

Add, for each employee of the company who is not a full-time employee, such fraction as is just and reasonable.

The result is the full-time equivalent employee number.

4

In this section references to an employee—

a

include a director, but

b

do not include—

i

an employee on maternity or paternity leave, or

ii

a student on vocational training.