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To access legal support from just £140 per hour arrange your no-obligation initial consultation to discuss your business requirements.
We can help your business attract and retain top talent without breaking the bank. Our employee share schemes align employees and consultants to your business goals, fit in with your company’s plans, constitution and shareholders and comply with regulations.
Careful planning and expert legal advice are needed to make sure that your employee share option plan meets the company’s commercial objectives, can cope with future changes to the company and workforce, takes advantage of whatever tax efficiencies and reliefs are available and provides protection for the company and its shareholders.
As equity incentive experts, we have the skills and experience to help you design an employee share option plan that’s right for your company and it’s employees, non-executive directors and (where appropriate) contractors. Equity incentive awards made at an early stage are likely to provide the most tax efficiency, and where start-ups and growth companies become successful, awards may still be in place and very valuable years later (e.g. on an exit or investment round). So, it is important to get this right.
Our employee share schemes solicitors can support you with:
Designing a share plan that meets the company’s commercial objectives
Advising on how your company’s constitution may need to be adapted to facilitate the incentive strategy and protect the company and shareholders in the short-, medium- and long-term
Assisting with The Board level and shareholder level steps needed to put your plan in place
Advising on any regulations that relate to the employee share scheme plan
Drafting equity plan documents and template and/or individual award agreements
Advising on any employment law aspects of introducing and operating an employee share schemes plan
Obtaining any necessary clearances from HMRC and/or drafting share valuation submissions
Protecting the rights of investors (such as under the EIS and SEIS schemes)
Assisting potential dilution and other impacts for founders, investors and other stakeholders
Advising on Directors’ remuneration and other corporate governance issues
Incentives that give staff and service providers a real stake in the company they’re working to build offers tangible benefits to both growing and established businesses.
Our expert employee share scheme lawyers can help assess your company’s suitability for any of the following tax advantaged share plans, obtain agreements for share valuation from HMRC, draft incentive plan documents, and assist in your dealings with HMRC.
Most suitable for small, high-risk companies, EMI share options are highly flexible and can provide very favourable tax treatment in respect of shares with a value up to £250,000 per employee.
If EMI is not available, CSOP options may be used to provide rights to acquire shares with a value up to £60,000.
Under an SAYE plan employees can be offered options to purchase ordinary shares at a favourable price that are linked to a savings contract of up to [£500] per month over a 3 or 5 year period.
Under a SIP employees can be offered free shares and/or rights to purchase shares tax free (with potential matching free shares) with an aggregate annual value of up to [£9,000].
EOTs can provide a tax efficient exit for existing shareholders while providing a platform for future employee share schemes (whether tax advantaged or non-tax advantaged). We can advise on the merits of selling your company to an EOT, help you structure and implement the sale and advise on implementing post-sale equity incentive arrangements.
Non-tax advantaged employee share schemes do not need to meet specific legal rules like the HMRC tax advantaged plans mentioned above, so they can be more straightforward to set up. However, they may need to be structured carefully to attract the most effective tax benefits. Our employee share scheme lawyers can work alongside you to determine if a non-tax advantaged incentive plan is right for you and help with structuring, set up and ongoing administration:
We can re-structure your company so you can make awards of ordinary shares to employees/consultants and advise on using different share classes to provide restricted rights for employee/consultant shares while retaining special rights for the existing shareholders such as voting rights and dividend rights as well as protection in respect of good leaver/bad leaver, compulsory transfer, drag along etc. These arrangements work well for early stage companies with shares of little value.
For growing companies with shares that have some value, an employee share class can be made subject to hurdle arrangements (growth shares) in order to reduce the acquisition value of the shares for employees. These arrangements work well to provide tax efficient equity incentives for early-stage and growing businesses which do not qualify for the HMRC tax advantaged arrangements, but the conditions that apply and issues relating to company valuation need to be carefully managed.
We can review your company’s suitability for an employee/consultant share class or growth share arrangement, draft amendments to your company’s constitution to create an appropriate share class, draft share subscription agreements and work with share valuers to assess the value of the shares at the time of acquisition and to incorporate an appropriate hurdle for growth shares if required.
These arrangements don’t normally require HMRC clearance or company valuation, and the paperwork can be more straightforward. Our expert team can advise whether a non-tax advantaged share option, RSU, SAR or phantom (cash) arrangement is right for you, provide appropriate documents and support you through the implementation process.
High-growth companies tell us that finding and retaining top talent when a business is scaling is one of their key risk areas, and balancing the needs of founders, investors and employees (while managing cashflow and protecting working capital) is crucial, particularly when considering an employee share plan. That’s why entrepreneurs, start-ups and SMEs lean on us. We know how to get the balance right – introducing an employee share schemes plan that aligns with your business strategy now and later down the line.
The law firm for start-ups and scale ups
We’re a modern law firm with a difference. Our innovative remote operating model means that you can access expert City-grade legal advice from partner-level solicitors at a fraction of the cost of traditional law firms. Our senior solicitors have all been recruited from top 100 UK law firms or large international businesses. Our expert employee share schemes and equity incentive lawyers include:
Pricing plans
Our three transparent pricing packages are designed to give you the widest possible access to high-quality legal advice, whatever the size and nature of your business:
Straightforward access to senior solicitors at a competitive rate.
An affordable solution for businesses needing one-off legal support. Receive ‘City’ partner-level expertise at a fraction of ‘City’ prices.
Have legal peace of mind for £209 per month with additional support from £140 per hour.
A monthly subscription legal support package specifically designed for start-ups and smaller businesses.
Providing you with priority access to a dedicated panel of highly experienced solicitors.
Fully account managed quarterly subscription service for businesses with more complex legal needs.
Our legal team can assist you across all areas of equity incentive arrangements, including:
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Our commercial lawyers are based in or close to major cities across the UK, providing expert legal advice to clients both locally and nationally.
We mainly work remotely, so we can work with you wherever you are. But we can arrange face-to-face meeting at our offices or a location of your choosing.
To access legal support from just £140 per hour arrange your no-obligation initial consultation to discuss your business requirements.