ETASSUM44460 - Schedule 4 Company Share Option Plan (CSOP): Requirements relating to options: Bound or entitled

A company becoming “bound or entitled” in accordance with Sections 979 – 985 of the Companies Act 2006 does not normally provide a right to exercise, the exercise trigger will normally be the change of control, however it will normally be a provision in the scheme rules to allow for an exchange of options (see ETASSUM45180). It is also common for options to lapse at the end of this period. Section 524 (2E) allows for tax relief where options are exercised as a result of a change of control in certain circumstance (refer to ETASSUM44420).