Clause 1 - Employee share ownership plans

Part of Employee Share Schemes Bill – in a Public Bill Committee at 10:30 am on 27th February 2002.

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Photo of Mark Field Mark Field Conservative, Cities of London and Westminster 10:30 am, 27th February 2002

I appreciate that this is a technical issue, as the hon. Gentleman has suggested, but there might be strong commercial reasons why, towards the end of a five-year period, it would not be an appropriate time to distribute the shares. For example, some employees may have broken away from or left the company. The company concerned might well intend to distribute the shares and be able to do so in the sixth, seventh or eighth year. Has any thought been given to trying to ensure that small companies, in which such distribution might be an

important part of a long-term incentive plan, do not lose out?