ETASSUM30120 - Schedule 3 Save As You Earn (SAYE) option scheme: Grant of share options - Legal considerations
It is clear from the requirements of paragraph 2(1) Schedule 3 that the purpose of a Schedule 3 SAYE Option scheme is the narrow one of granting 바카라 사이트˜share options바카라 사이트™ to directors and employees with the shares acquired by the exercise of share options to be paid for with the repayment from the linked savings contract. Section 516(4) ITEPA defines a 바카라 사이트˜share option바카라 사이트™ as 바카라 사이트˜a right to acquire shares in a company바카라 사이트™. The word 바카라 사이트˜right바카라 사이트™ indicates that there must be some sort of legal entitlement.
For an employee or director to have a legally enforceable 바카라 사이트˜right바카라 사이트™ to acquire shares under English law:
- the option must have been granted under company seal or deed, or
- consideration must have been given for the grant of the option.
In the case of a savings-related scheme the consideration for the grant of an option is normally taken to be the undertaking of the employee to enter into and comply with the obligations under the savings contract.