ETASSUM23100 - Schedule 2 share incentive plan (SIP): Shares that may be awarded: Introduction

Paragraph 25 imposes requirements in relation to the shares which can be awarded under Schedule 2 SIPs. »Ê¹ÚÌåÓýapp requirements for shares (“eligible sharesâ€�) which can be used are then set out in paragraphs 26 to 29 of Schedule 2.

»Ê¹ÚÌåÓýapp aim of the legislation is to ensure that the shares which participants will acquire under a Schedule 2 SIP are:

  • normal shares on normal terms (paragraphs 28 and 29),

  • in a company:

  • with which their employment can be identified (paragraph 26), and
  • that offers little scope for manipulating the value of the shares (paragraph 27).