Employers EMI Option Plan Guide For AIM Listed Company

This legal template is a comprehensive guide that outlines the procedures and considerations for implementing an Employers EMI (Enterprise Management Incentive) Option Plan specifically designed for an AIM (Alternative Investment Market) listed company operating under UK law. An EMI Option Plan is a type of share-based remuneration scheme aimed at rewarding and incentivizing employees by granting them the opportunity to purchase shares in their employer company at a predetermined price within a specified timeframe.

This guide is tailored to address the specific legal requirements and regulations associated with an AIM listed company, ensuring compliance with the necessary legal framework and provisions under UK law. It provides an overview of the EMI Option Plan, its benefits, and the eligibility criteria that employees must meet to participate in the scheme.

Furthermore, the template discusses the process of implementing the plan, including the valuation of shares, the approval and adoption of the plan by the company's directors, and the necessary communication with HM Revenue and Customs (HMRC) for obtaining tax advantages associated with EMI schemes.

The guide also covers the administration and operation of the EMI Option Plan, outlining the rights and restrictions associated with the granted options, their exercise periods, and any potential vesting schedules that may apply. It also provides guidance on the tax implications for both the employer and employees under UK law, explaining the relevant tax reliefs available and the reporting requirements to ensure compliance.

Overall, this legal template serves as a comprehensive and user-friendly resource for AIM listed companies in the UK seeking to implement an Employers EMI Option Plan, providing them with a step-by-step guide to understanding the legal requirements, taxation considerations, and best practices associated with such schemes.