Share Option Agreement
The grant of options over shares in companies has become an increasingly popular targeted incentive for key personnel. This structure tends to align the interests of the executives concerned with those of the wider shareholders. Share Option schemes are particularly suited to UK bared SMEs seeking to recruit and retain key employees and who prefer not to attempt to satisfy the complex criteria applicable to a statutory scheme (such as EMI). A popular option condition is the ability to exercise only following the sale of a controlling stake - essentially ensuring that the controller of a business can only benefit from the grant.
The grant of a Share Option can result in complex tax and national insurance implications both for employer and employee and will normally also have an impact on the capital structure of the entity involved. Our packaged internet product assumes that our company clients will have already understood the benefits and tax implications and will have decided to participate in a Share Option scheme prior to their decision to buy our internet Share Option product. This product is essentially a turn-key implementation package for businesses who have already decided that Share Option is the direction in which they wish to go.
We can also advise on the matters mentioned in a bespoke retainer. Please Contact Us for more information. You may also wish to consider our Enterprise Management Incentive product.
How long will it take?
The time taken for our work to conclude depends on precisely what it is we are asked to do. We would expect to have completed an initial draft within a week of taking your instructions. Special dispatch may be available where necessary at an extra charge.
Our work includes:
- Taking your instructions
- Drafting the Share Option Agreement
- Drafting minutes setting up the Scheme
- A Guidance service
Our work will be charged at a fixed fee of £360 including VAT.
Our fee applies regardless of how much work we actually do. In some cases this may mean we’ll get relatively better paid for doing less work than in other cases, in which the fixed fee will barely cover our costs. This is simply the nature of the mutual gamble between a solicitor and their client when they fix a fee.
More detail of all these matters will be outlined in our retainer letter which you will be able to review before you engage us, after pressing the “Buy” button on the website.
If you have any questions or require any further information, please don’t hesitate to Contact Us.