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Minority share option holders
Mr X acquires an enterprise management incentive scheme option over 4,000 shares at a strike price of £10 per share. This is the 'fair value' at which shares must change hands under the Articles. Fair value is defined to ignore any discount for the size of the holding. The market value on a minority holding basis is £4 per share. Mr X expects to sell out within five years at £50 per share.
Minority share option holders
Mr X acquires an enterprise management incentive scheme option over 4 000 shares at a strike price of £10 per share. This is the 'fair value' at which shares must change hands under the Articles. Fair value is defined to ignore any discount for the size of the holding. The market value on a minority holding basis is £4 per share. Mr X expects to sell out within five years at £50 per share.
A leaver (good or bad) must sell at this fair value price as must any shareholder wanting to sell at any time for whatever reason. Other members under the offer-round procedure are not bound to buy; if and to the extent they do not the vendor is only able to sell to a non-member at fair value or greater.
Mr X exercises his option....
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
