ETASSUM42390 - Schedule 4 Company Share Option Plan (CSOP): Eligibility of individuals to participate: »Ê¹ÚÌåÓýapp "no material interest" requirement: Interests in Share Incentive Plans (SIPs)
If any of the company’s shares are held by the trustees of a Share Incentive Plan for the employee or his associate they must be taken into account for the purposes of the material interest test; they are beneficially owned by the employee or associate. This is the case if the shares:
- were appropriated as “plan shares� to the individual under the rules of the SIP, or
- are held on a bare trust before being distributed to the individual as beneficial owner.
Any un-appropriated shares which the trustees are holding for the purposes of the SIP are not to be attributed to the employee or his associate for the material interest test. »Ê¹ÚÌåÓýappse shares are still counted as part of the ordinary share capital of the company, however.