ETASSUM43320 - Schedule 4 Company Share Option Plan (CSOP): Shares to be used: Open market test

Paragraph 20 was repealed on 6 April 2023: Unexercised options granted prior to 6 April 2023 will benefit from the changes to the share class requirement.

Options granted prior to 6 April 2023:
For companies with more than one class of shares, if the scheme shares are not 鈥渆mployee-control鈥� shares, they must satisfy the 鈥渙pen market test鈥� in paragraph 20(3)(a). This means that the majority of the shares of the scheme class must be held by what can be summarised as 鈥渙utsiders鈥�, specifically:

  • persons who did not acquire their shares 鈥渁s a director or employee鈥� of any company (paragraph 20(3)(a)) (ETASSUM43330),
  • persons who acquired their shares in pursuance of an offer to the public (paragraph 20(3)(a)),
  • trustees - but excluding the shares they hold on behalf of persons who acquired their interests in the shares 鈥渁s a director or employee鈥� and not in pursuance of an offer to the public (paragraph 20(3)(b)),