Step | Responsible parties |
Week one | |
Assessment of (a) whether the company qualifies to grant EMI options and (b) proposed participating employee(s) EMI qualification. |
Us / the company |
If required (depending on outcome of action (1(a)) above), preparation of EMI scheme advance assurance application to HMRC in relation to whether the company qualifies to grant EMI options. |
Us / the company |
Preparation and circulation of a Term Sheet (or other form of design questionnaire) outlining the proposed design of the (a) EMI plan (the “Plan”), (b) the initial options to be granted under the Plan (c) the option share rights and (d) other points for discussion. |
Us |
Week two | |
Discuss and agree contents of Term Sheet and circulate final agreed Term Sheet. |
Us / the company |
If required, submission of EMI advance assurance application to HMRC. |
Us |
Draft Articles of Association to reflect agreed share rights. |
Us |
Week three | |
Preparation and review of EMI valuation submission to HMRC to agree the basis of valuation for granting EMI options. |
Share valuer / Us / the company |
Submission of valuation proposal to HMRC with draft Plan documentation. | Share valuer |
Week four and five | |
Preparation of main legal documents in relation to the Plan and the initial grant of options:
|
Us |
Week six | |
HMRC approval of valuation. |
HMRC / share valuer |
The company holds a board meeting to adopt the Plan and grant the initial options. Deed of Grant signed. |
The company |
Employee documents are signed and executed. Option agreements dated. |
Employees / The company |
Fully executed copy of the EMI option agreement sent to the employee within seven days of the date the employee signing the option agreement. |
The company |
Plan registered online with HMRC using the employment-related securities (ERS) online service. |
The company (with us advising) |
EMI option grants notified to HMRC through the ERS online service within 92 days of their date of grant. |
The company (with us advising) |
Post completion matters | |
Option activity reported to HMRC through the ERS online service. Deadline of 6 July following each tax year. |
The company (with us advising) |
Legal Articles
EMI implementation timetable
Posted by Steve Halkett on 09 July 2017