Variation of employee share schemes allowed for regulatory compliance but barred if detrimental to employee interests. A company shall not vary terms of employee share-based benefit schemes in any manner detrimental to the interests of the employees, though variations to meet regulatory requirements are permitted. Subject to that proviso, terms not yet exercised may be varied by special resolution only if not prejudicial to employees; such variations are subject to the same procedures as original grants. Notices for special resolutions must disclose full details, rationale and beneficiary details. Repricing of unexercised options, SARs or shares is allowed where market decline rendered schemes unattractive, provided repricing is not detrimental to employees and has shareholder approval.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Variation of employee share schemes allowed for regulatory compliance but barred if detrimental to employee interests.
A company shall not vary terms of employee share-based benefit schemes in any manner detrimental to the interests of the employees, though variations to meet regulatory requirements are permitted. Subject to that proviso, terms not yet exercised may be varied by special resolution only if not prejudicial to employees; such variations are subject to the same procedures as original grants. Notices for special resolutions must disclose full details, rationale and beneficiary details. Repricing of unexercised options, SARs or shares is allowed where market decline rendered schemes unattractive, provided repricing is not detrimental to employees and has shareholder approval.
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