ESOPs, a positive healthy move
The Employee Share Ownership Schemes (ESOP) available to listed
corporates is a very positive move which is implemented by listed
companies to employees who have an opportunity to participate in the
equity, Colombo Stock Exchange CEO Surekha Sellahewa told Daily News
The procedure is that these ESOPs generally get the approval of
Boards of Directors and the shareholders of the company, enabling them
to purchase them, she said.
The CSE CEO further explained, “Under the CSE Listing Rules 5.6 (a)
and (b) relating to Employee Share Ownership and Option Plan, the
applicant Entity is required in the first instance to make an
announcement to the exchange of the decision of the Board of Directors
to issue shares on an Employee Share Ownership and Option Plan (ESOP)
immediately upon such decision being made.
Such announcement shall include the number of shares to be issued,
the consideration for which the shares are to be issued, current stated
capital of the Entity.
“The issue of shares by way of Share Ownership and Option Plan is
subject to the Exchange approving in principle, the issue and listing of
shares and obtaining shareholder approval at a General Meeting,” she
If a Listed Entity proposes to create or establish an Employee Share
Ownership or Option Plan whereby shares of the Entity will be allotted
to or held by any person on trust on behalf of directors and or
employees of the Entity the following procedure must be followed:- Prior
approval of the shareholders by way of Special Resolution at a General
Meeting obtained to establish an Employee Share Ownership and Option
Plan and for the issue of shares under such Ownership and Option Plan.