Taxes Consolidation Act 1997 Schedule 12 paragraph 14

Type of securities the trustees may acquire

Paragraph 14 of Schedule 12 sets out the requirements for the type of securities that trustees of an approved profit sharing scheme may acquire and the restrictions that may attach to those securities.

• Securities acquired by the trustees must be fully paid, non-redeemable ordinary shares in the founding company, not subject to any restrictions that do not apply equally to all shares of the same class
• Restrictions requiring disposal of shares on cessation of employment or directorship are permitted, provided they are imposed by the company's articles of association
• Such permitted restrictions must require disposal by sale for money on terms set out in the articles, with matching general provisions applying to all shares of the same class
• Trustees may not acquire shares at more than market value, nor at a time when the founding company is controlled by another company