20 MAY 2021 – BRIEFING BULLETIN: Legislation on Trusts, Employee Schemes, Broad-Based Schemes Released
The long-awaited Practice Note on the rules for discretionary Collective Enterprises such as Broad-Based Schemes, Employee Share Ownership Programmes, Trade Unions, Not for Profit Companies, Co-operatives, Trusts, was published by the Department of Trade, Industry and Competition.
CLICK HERE TO LISTEN TO THE BRIEFING BULLETIN
This Practice Note clarifies, amongst others, that:
- a defined class of black beneficiaries satisfies the ownership provisions under the Codes and not necessarily a list of names of beneficiaries;
- evergreen ESOPs, which provide perpetual benefit to workers of the company, satisfies the ownership provisions under the Codes;
- minors qualify to be included in the ownership calculations and determination of Collective Enterprises;
- distributions can be in cash or kind and that both can be claimed under Economic Interest on the Ownership scorecard;
- allows for discretion to be applied by the Fiduciaries on the value or portion of Economic Interest distributions to beneficiaries or participants; and
- allows for Voting Rights to be measured through the Fiduciaries voting on behalf of the beneficiaries or participants.
Alternative Prosperity had two complimentary expert online briefing bulletins to cast the spotlight and clarify the significant changes.
Provision was made for questions and answers on this explanatory memorandum.
Date
- May 20 2021
- Expired!
Time
- 1:00 pm - 1:45 pm
