SR Logo Add me to your Home Screen
You can add this application to your Home screen.
SR Logo Add me to your Home Screen

To install this app in your iOS device simply tap the share icon iOS share icon  and then 'Add to Home Screen': iOS add to homescreen icon

Stock Option Plan / Grant / Bangladesh

Loading...


Securities Laws and Regulatory Issues

( Mandatory, material action )

Company

Awards made by an overseas Company under an employee Plan are not considered to be a public offering, provided the Awards are made for no consideration. Where any payment is required to be made in connection with Awards, a prospectus must be prepared and filed with BSEC. It is unlikely that the prospectus would be approved in these circumstances. 

Public offers of securities are subject to the prospectus requirements of the Bangladesh Securities & Exchange Ordinance and approval from the Bangladesh Securities & Exchange Commission (BSEC). 

Awards made by an overseas Company under a Plan for employees are not considered to be a public offering and so are outside the scope of the BSEC requirements and any requirements to prepare a prospectus, provided the Awards are made for no consideration.

Where any payment is required to be made in connection with Awards, a prospectus must be prepared and filed with the BSEC. The BSEC will also require copies of the Plan documents. It is unlikely that a prospectus would be approved by the BSEC in these circumstances. 

Consideration should therefore be given to structuring Awards in Bangladesh as nil-cost Awards. 


Timing: Before grant.
Cost: EUR 500 - For providing advice on prospectus requirements.

Exchange Controls

( Mandatory, material action )

Employee

Approval from the Central Bank is required where funds are remitted abroad in connection with Awards, which is generally difficult to obtain.

Approval from the Central Bank is required where funds are remitted abroad in connection with Awards, which is generally difficult to obtain. 


Timing: Before grant.

Exchange Controls - Foreign Assets Reporting

( Mandatory, minor action )

Employee

Participants must report any change in holding of securities in an overseas Company to the central bank within 30 days of such change.

Participants must report any change in holding of securities in an overseas Company to the central bank within 30 days of such change.


Timing: 30 days grant.

Award Documents and Communication

Translations

( Recommended action )

Company

There is no legal requirement to provide a translated version of the Plan documentation. However, if there are any concerns that the Participants will not understand the Plan, consideration should be given to providing a translated version of the key Plan documents (for example, the Award certificate and any FAQs). Translations are recommended where the Plan documents are in a language other than Bengali or English.

There is no legal requirement to provide a translated version of the Plan documentation. However, if there are any concerns that the Participants will not understand the Plan, consideration should be given to providing a translated version of the key Plan documents (for example, the Award certificate and any FAQs). Translations are recommended where the Plan documents are in a language other than Bengali or English.


Award Documents and Communication

Award Document Wording

( Recommended action )

Company

It is recommended to have a local version of the Award documents which includes wording to deal with local tax and legal issues.

It is recommended that the following is included in the Award documents:

  1. wording to state that the Award is separate from and does not form part of the Participant’s employment benefits to exclude any liability on the part of the Company or Local Company for the loss of an Award as a result of the Participant’s termination of employment;
  2. a full indemnity in respect of income tax and social security obligations;
  3. language to confirm that the Local Company is operating the Plan in accordance with the applicable data privacy laws, including consent language in relation to personal information; and
  4. where deductions are to be made to Participants' salaries in connection with the Plan, that Participants agree to such deductions being made. 

In addition, any dispute resolution clauses must be compliant with local contract laws.


Cost: EUR 2000 - Per Award type.
SR Logo Alert
This issue has been hidden as reviewed
SR Logo Alert
The status has been updated
SR Logo Alert
This issue has been recovered
SR Logo Error
Sorry, something went wrong, please try again

Try the filters to refine your search!