SCHEDULE 5 Employee Share Ownership Trusts
Finance Act 1989 (1989 c 26) | Legislation

SCHEDULE 5 Employee Share Ownership Trusts

Section 74

Qualifying trusts

1

A trust is a qualifying employee share ownership trust at the time it is established if the conditions set out in paragraphs 2 to 11 below are satisfied in relation to the trust at that time.

General

2

(1)     The trust must be established under a deed (the trust deed).

(2)     The trust must be established by a company (the founding company) which, at the time the trust is established, is resident in the United Kingdom and not controlled by another company.

Trustees

3

(1)     The trust deed must provide for the establishment of a body of trustees.

(2)     The trust deed must—

(a)     appoint the initial trustees;

(b)     contain rules for the retirement and removal of trustees;

(c)     contain rules for the appointment of replacement and additional trustees.

(3)     The trust deed must provide that at any time while the trust subsists (the relevant time)—

(a)     the number of trustees must not be less than three;

(b)     all the trustees must be resident in the United Kingdom;

(c)     the trustees must include one person who is a trust corporation, a

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