The following Share Incentives practice note Produced in partnership with Stephen Woodhouse and William Franklin provides comprehensive and up to date legal information covering:
Jointly owned shares are no more and no less than their description implies, namely shares owned jointly by an employee or director and a third party, either an investor in the company or, more commonly, the trustees of an employee benefit trust (EBT).
The concept of joint share ownership was developed as an alternative to other forms of share incentives such as share options, restricted shares or performance share plans (often using nil cost options).
The benefit delivered under a joint share ownership plan (JSOP) award is equal to the increase in share value post-grant (normally increased by a ‘carrying cost’), and therefore a JSOP award is similar to a market value share option but with a different tax treatment.
The structure has several commercial advantages compared with other forms of awards. These include:
Compared with share options or performance share plans with delayed share acquisition:
a direct alignment of the interests of the participants and other shareholders due to the participant acquiring immediate beneficial ownership of an interest in the shares
due to this ownership, the immediate ability for participants to receive dividends in line with their share interest
when structured and implemented correctly, any gain realised under a JSOP award should be subject to capital gains tax (CGT) rather than income tax and National Insurance contributions (NICs)
unlike HMRC tax-advantaged plans, there
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
This Practice Note examines:•why negative pledge clauses are used in commercial transactions •the consequences of breaching negative pledge provisions•how negative pledges are viewed in the context of security and quasi-security, and•key considerations when drafting a negative pledge clauseWhere
There are two kinds of burden:•the legal burden, and•the evidential burdenThe legal burdenA party has the legal (sometimes called ‘the persuasive’) burden where the onus is on that party to prove a fact or issue in a case to the required standard of proof.The legal burden is generally on the
Having established that a duty of care exists (see Practice Note: Negligence—when does a duty of care arise?), it is then necessary to consider whether or not there has been a breach of that duty. This will depend on a number of factors outlined below and considered against the general background of
IntroductionShari'ah (also Sharia, Shariah or Shari’a) (literally, in Arabic, 'the path towards the watering place') or Islamic law is the legal system of the religion of Islam that sets out a system of duties or code of conduct for individuals to follow so that they may live their life in a
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.