Taxes Consolidation Act 1997 Schedule 12 paragraph 12

Trustees' functions

Paragraph 12 of Schedule 12 requires the trust deed of an Employee Share Ownership Trust (ESOT) to set out the functions of the trustees, making clear the range of activities they are empowered to carry out.

• The ESOT trust deed must contain specific provisions setting out the trustees' functions.
• Core functions include receiving sums from the founding company, acquiring securities, and granting beneficiaries rights to acquire shares.
• Trustees may transfer securities or sums (or both) to beneficiaries, and may pay sums or transfer securities to personal representatives of deceased beneficiaries.
• Pending any transfer, the trustees are required to retain and manage the securities, including by exercising voting rights.