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Stock Option Plan / Grant / Bangladesh

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Securities Laws and Regulatory Issues

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

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, exercise.

Exchange Controls - Foreign Assets Reporting

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, exercise, sale.