Section 257DJ | The number of employees requirement

(1)If the issuing company is a single company, the full-time equivalent employee number for it must be less than 25 when the relevant shares are issued.

(2)If the issuing company is a parent company, the sum of—

(a)the full-time equivalent employee number for it, and

(b)the full-time equivalent employee numbers for each of its qualifying subsidiaries,

must be less than 25 when the relevant shares are issued.

(3)The full-time equivalent employee number for a company is calculated as follows—

Step 1 Find the number of full-time employees of the company.

Step 2 Add, for each employee of the company who is not a full-time employee, such fraction as is just and reasonable. The result is the full-time equivalent employee number.

(4)In this section references to an employee—

(a)include a director, but

(b)do not include—

(i)an employee on maternity , paternity , shared parental , parental bereavement or neonatal care leave, or

(ii)a student on vocational training.