Schedule 4 Company Share Option Plan (CSOP): Shares to be used: As a director or employee
Paragraph 20(3)(a) refers to shares as being open market shares if the people holding the shares are not persons who acquired their shares “in pursuance of a right conferred on them or an opportunity afforded to them as a director or employee of the scheme organiser or any other company, and not as a result of an offer to the public”. There will only be very limited circumstances where shares acquired by a director or employee were acquired in another capacity.
Section 421B(3) (section 471(3) in relation to securities options) ITEPA deems that securities acquired will be by reason of an employment unless:
- the person by whom the right or opportunity is made available is an individual, and
- the right or opportunity is made available in the normal course of the domestic, family or personal relationships of that person.