Taxes Consolidation Act 1997 Schedule 11 paragraph 9

Types of shares that may be used

Paragraph 9 of Schedule 11 specifies the types of shares that may be used in an approved profit sharing scheme.

• Scheme shares must be of a class quoted on a recognised stock exchange, or shares in a company that is not under the control of another company.
• Shares in a subsidiary company may also qualify, provided the parent company's shares are quoted on a recognised stock exchange and the parent is not a close company.
• The close company test applies equally to a non-resident parent — if it would be a close company were it resident in the State, its subsidiary's shares do not qualify.
• These requirements ensure that scheme shares are in companies subject to broad ownership or public market oversight, preventing the use of shares in privately controlled groups.