Non-transferability of employee stock options: rules on exclusive exercise, prohibition on alienation, and vesting on death or incapacity. Options granted to an employee are non-transferable and exercisable only by the grantee; cashless exercise may be funded by the company or empanelled brokers with adjustment against sale proceeds and subject to company law. Options cannot be pledged or otherwise alienated. On employee death or permanent incapacity, options granted up to that date vest in heirs/nominees or in the employee respectively. On resignation or termination unvested options expire while vested options are retained subject to plan provisions; options granted to a director nominated by an institution cannot be renounced in favour of that institution.
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.
Non-transferability of employee stock options: rules on exclusive exercise, prohibition on alienation, and vesting on death or incapacity.
Options granted to an employee are non-transferable and exercisable only by the grantee; cashless exercise may be funded by the company or empanelled brokers with adjustment against sale proceeds and subject to company law. Options cannot be pledged or otherwise alienated. On employee death or permanent incapacity, options granted up to that date vest in heirs/nominees or in the employee respectively. On resignation or termination unvested options expire while vested options are retained subject to plan provisions; options granted to a director nominated by an institution cannot be renounced in favour of that institution.
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