Repricing of employee stock options permitted when market decline renders them unattractive, subject to employee protection and shareholder approval. A company shall not vary ESOS terms in a manner detrimental to employees. Variation affecting earlier grants that remain unexercised may be made by special resolution only if not prejudicial to option holders; clause 6.3 procedural safeguards apply and the notice must disclose the variation, rationale and beneficiary details. Repricing of unexercised (whether vested or not) options is permitted if market decline has rendered ESOS unattractive, provided repricing is not detrimental to employees and shareholders approve in a general meeting.
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.
Repricing of employee stock options permitted when market decline renders them unattractive, subject to employee protection and shareholder approval.
A company shall not vary ESOS terms in a manner detrimental to employees. Variation affecting earlier grants that remain unexercised may be made by special resolution only if not prejudicial to option holders; clause 6.3 procedural safeguards apply and the notice must disclose the variation, rationale and beneficiary details. Repricing of unexercised (whether vested or not) options is permitted if market decline has rendered ESOS unattractive, provided repricing is not detrimental to employees and shareholders approve in a general meeting.
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