ETASSUM45200 | Schedule 4 Company Share Option Plan (CSOP): Exchange of share options: Appropriate period

Scheme rules will often refer to the “Appropriate period” although this term is not used in Schedule 4 however paragraph 26(3) requires that the “agreement” is made in accordance with the following:

a. The period of 6 months following the time a company which made a general offer obtains control and the offer has become unconditional;

b. The period of 6 months following the time the court sanctions a compromise or arrangement under section 899 Companies Act 2006, in pursuance of which a company obtains control of the company whose shares are scheme shares;

ba. The period of 6 months beginning with the date on which the non-UK company reorganisation arrangement becomes binding on the shareholders covered by it in pursuance of which a company obtains control of the scheme company;

c. The period during which the acquiring company remains bound or entitled to acquire the shares of minority shareholders under sections 979 – 985 of the Companies Act 2006.

Where scheme rules contain rollover provisions the period in which “agreement” is to be made should be defined in accordance with the above.