EMI share options term sheet


Published by a ½Û×ÓÊÓƵ Share Incentives expert
Precedents

EMI share options term sheet


Published by a ½Û×ÓÊÓƵ Share Incentives expert

Precedents
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[INSERT NAME OF COMPANY]

EMI Share Options

This Term sheet summarises a proposal to incentivise key employees of [insert name of company] (referred to below as the ‘Company’) by granting those employees statutory tax advantaged enterprise management incentives (EMI) share options over Shares in the Company (EMI Options). All issues raised in this document are for discussion purposes and each should be considered carefully before implementation.

    1. 1

      Overview

      The EMI scheme is a highly flexible and tax-efficient share option scheme designed specifically for small/medium-sized businesses. EMI schemes are one of the most popular of the share option schemes available to companies. EMI Options must be granted for commercial reasons in order to recruit or retain an employee in a company, and not as part of a scheme or arrangement the main purpose (or one of the main purposes) of which is the avoidance of tax.

      Under the terms of the proposal, participants will be granted EMI share options with an Exercise price determined at the date of grant.

      An EMI scheme is discretionary. This means that the company can choose

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Jurisdiction(s):
United Kingdom
Key definition:
Share option definition
What does Share option mean?

A share option is an agreement between the holder of shares and a third party. An option gives one party the right (but not an obligation) to purchase shares at a specified price at a specified point of time (or on the occurrence of a specified event).

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