| Commentary

174.2 Share option schemes

| Commentary

174.2 Share option schemes

The existence of share option schemes in favour of the target company’s shareholders or employees may be a complicating factor. There are two main issues involved. It is usual that the scheme rules will contain a right to exercise within a specified period of time from the date of an offer being made, conditional upon accepting the offer, failing which the option will expire. In the event that the rules do not provide for this, then agreement between the target company and the offeror should provide that the option holders are provided with an attractive alternative

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