Prospectus exemptions extended for employee shares
The EU Prospectus Directive (the PD) requires any company who is offering shares to the public to provide a prospectus to that investor. On 17th June 2010 the European Parliament approved a directive which will amend the PD. A number of the amendments are relevant to the operation of employee share schemes in Europe.
In particular, the employee share scheme exemption has been extended to include companies which are listed on a non-European market such as the NYSE and companies whose head offices are within the EU. The threshold under which offers in the EU are excluded from the PD has been raised from EUR 2,500,000 to EUR 5,000,000 as well as the threshold for the number of persons an offer is made to from 100 to 150.
These amendments will not apply until they have been implemented by that Member State. It is expected that these amendments will be implemented by April 2012.
For more information on employee share schemes please call 020 8949 5522 to speak to one of our experts.