Q&As

Can non-executive directors (NEDs) be granted tax-advantaged share awards?

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Published on LexisPSL on 18/01/2016

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

  • Can non-executive directors (NEDs) be granted tax-advantaged share awards?

Can non-executive directors (NEDs) be granted tax-advantaged share awards?

The general definition of ‘director’ is not exhaustive. The Companies Act 2006 (CA 2006) provides that the term director includes any person occupying the position of director, by whatever name called. Thus it includes both executive and non-executive directors (NEDs). NEDs generally:

  1. have no executive authority

  2. play a critical part in the corporate governance of the company, and

  3. are not employees of the company

For further information on NEDs and remunerating NEDs, see Practice Note: Shares for non-executive directors—issues and considerations and Methods of

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