💷 Deed of declaration

The Deed of Declaration of Beneficial Ownership of Shares (Employee Benefit Trust) is a legally binding document created under UK law that outlines the rights and obligations of an Employee Benefit Trust (EBT) regarding the ownership and administration of company shares. In this context, an EBT is a trust established by a company to hold shares on behalf of its employees, providing them with certain benefits and incentives.

This legal template establishes the framework for recording the beneficial ownership of shares held by an EBT. It specifies the rules and regulations governing the trust's role as the legal owner of the shares, while clearly defining the rights and entitlements of the employees as beneficial owners.

The template may cover various essential elements such as the identification of the company and the EBT, the purpose and objectives of the trust, the rights and responsibilities of the trustees, the voting rights attached to the shares, and any restrictions on the transfer of shares owned by the EBT. It may also outline the procedures for distributing dividends, capital, or other benefits to the beneficiaries, as well as mechanisms for resolving any disputes or issues that may arise.

Additionally, the template may address the compliance requirements under relevant UK legislation, such as tax regulations, governing EBTs. It may include provisions to ensure the EBT operates within the prescribed legal boundaries, thereby safeguarding the interests of both the company and the employees.

Overall, this legal template serves as a comprehensive framework for establishing and managing the beneficial ownership of shares held by an Employee Benefit Trust under UK law, providing clarity and protection for all involved parties.