ETASSUM45110 - Schedule 4 Company Share Option Plan (CSOP): Exchange of share options: Company reorganisation

Paragraph 26 allows a Schedule 4 CSOP scheme to provide for an exchange of share options where:

  • there is a company reorganisation of a scheme company (a company whose shares may be acquired by the exercise of share options under the scheme), and
  • a participant has obtained share options under the scheme to acquire shares of the scheme company (old options),

the participant may agree with the acquiring company to release the 鈥渙ld options鈥� in consideration for the grant of 鈥渘ew options鈥�.

A company reorganisation will arise where another company (the acquiring company) obtains control of the scheme company by means of a general offer (see ETASSUM45150), by compromise or arrangement (see ETASSUM45160) or the acquiring company becoming 鈥渂ound or entitled (see ETASSUM45180).