Schedule 2 Share Incentive Plan (SIP): Eligibility: No simultaneous participation in connected Schedule 2 SIPs
An employee cannot participate in awards of shares under more than one Schedule 2 SIP, established by the same company or a connected company, at the same time (paragraph 18(1)). For this purpose ‘connected company’ means:
- a company which controls or is controlled by the establishing company,
- a company which is controlled by a company which also controls the establishing company, or
- a company which is a member of a consortium owning the establishing company or which is partly-owned by the establishing company as a member of a consortium.
‘Member of a consortium’ is defined by paragraph 99(3). It means one of a number of companies which between them beneficially own not less than 75% (that is, at least 75%) of the other company’s ordinary share capital and each of which beneficially owns not less than 5% of that capital.
An individual is treated as having participated in an award of free shares under a Schedule 2 SIP if he or she would have been awarded shares but for his or her failure to obtain a performance allowance (paragraph 18(2)).