Schedule 4 Company Share Option Plan (CSOP): Shares to be used: Introduction
Paragraph 15 imposes requirements on which shares can be used in Schedule 4 CSOP schemes.
The relevant requirements concerning the shares which can be used (‘scheme shares’) are then set out in paragraphs 16-20 of Schedule 4.
The legislation aims to ensure that the scheme shares which participants will acquire under a Schedule 4 CSOP scheme are:
- normal shares on normal terms (paragraphs 18, 19* and 20),
- in a company:
- with which their employment can be identified (paragraph 16), and
that offers little scope for manipulating the value of the shares (paragraph 17).
- Paragraph 19 was repealed by Schedule 2 to the Finance Act 2013 in relation to share options granted on or after 17 July 2013.