EMI options—FAQs for employees
Published by a LexisNexis Share Incentives expert
Last updated on 24/06/2021

The following Share Incentives precedent provides comprehensive and up to date legal information covering:

  • EMI options—FAQs for employees

EMI options—FAQs for employees

What is the [insert name of EMI scheme]?

[insert name of company establishing EMI scheme] (the Company) has established the [insert name of EMI scheme] scheme (EMI Scheme). Pursuant to the EMI Scheme, the Company can grant enterprise management incentives (EMI) qualifying share options and also unapproved share options. Unless otherwise stated in this paper, you have been granted EMI qualifying share options.

These FAQs outline the key provisions of the EMI Scheme and explain some of the tax benefits. The full details of the EMI Scheme are set out in the option grant documentation. If there is any contradiction or discrepancy between the EMI Scheme rules and/or option agreement and these FAQs, the plan rules take priority.

What are EMI options?

The EMI Scheme pursuant to which your option has been granted is a highly flexible and tax-efficient scheme designed specifically for small/medium-sized businesses and it is subject to specific legislation. You have been selected to participate in the EMI Scheme and have been granted an option to buy the set number of shares (as specified under your option agreement) for a fixed price.

Your option is designed (but not guaranteed) to qualify as an EMI option, which can offer you significant tax advantages in relation to any gains realised when you exercise the option and sell the resultant shares (see tax treatment below). 

How do

Related documents:
Key definition:
Rules definition
What does Rules mean?

The detailed provisions of a pension scheme.

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