Items in blue and marked * are essential:
1. A plain English summary of the scheme design, for future reference.
We call it a “blueprint”.
2. A simple financial model
to illustrate who will get what and with what expected value.
3. A share valuation, possibly with an HMRC assurance letter.
4. A set of plan rules.*
You need this to qualify for wide-ranging exemptions from various pieces of legislation, such as the Companies Acts, inheritance tax laws and FCA regulations.
5. An option agreement or share subscription agreement or share purchase agreement.*
The agreement type depends on the type of scheme.
6. A set of board minutes and shareholder resolutions.*
7. A trust deed, a trustee and additional company approvals.*
Only if you are using an Employee Benefit Trust or a SIP.