Our Share Schemes Expert group contributed to the QCA's Response to BIS on amending the rule against perpetuities and further reducing the complexity of employee ownership.
We believe that 125 years is adequate for the majority of situations encountered by small and mid-size quoted companies, but noted that there may be limited situations where a longer period is helpful and where we would support the exemption of employee trusts that are employees’ share schemes. We noted that the growth in employee benefit trusts in recent years might give rise to a future problem for privately owned companies that are 100% owned by employee trusts. We further noted that this change in law would be appropriate to encourage further employee share ownership in businesses.
Click here to download the response (pdf)