Schedule 2 share incentive plan (SIP): Shares that may be awarded: Status of the company and its share capital
Paragraph 26 imposes two requirements:
- One concerns the company whose shares may be used as eligible shares, and
- The other requires the eligible shares to form part of the ordinary share capital of that company.
These requirements should be considered in conjunction with paragraph 27 which concerns the “status” of the company whose shares are to be used in the plan. For example, if the eligible shares are in a company which is a subsidiary, it must be listed on a recognised stock exchange or have a listed parent (see ETASSUM23220).