Q&As

Can a company have discretion as to whether to permit its CSOP options to be exercised during the 20 days before a change of control?

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Published on LexisPSL on 25/01/2016

The following Share Incentives Q&A provides comprehensive and up to date legal information covering:

  • Can a company have discretion as to whether to permit its CSOP options to be exercised during the 20 days before a change of control?

HMRC guidance in its new Employee Tax Advantaged Share Scheme User Manual (ETASSUM) states that a company can amend its existing company share option plan (CSOP) in order to allow for options to be exercised up to 20 days before and after a change of control, but it does not suggest that any such exercises can be permitted at the discretion of the company. This differs from the guidance in the old Employee Share Schemes User Manual, which ETASSUM replaces. This indicated (at ESSUM44500) that 'It is acceptable for the right to exercise to be subject to discretion in these circumstances providing that such discretion is

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