There are extremely strict exchange controls restrictions in Algeria which means that it is very unlikely that any equity-based Awards can be granted to Participants based in Algeria. It is therefore recommended that a cash-based alternative is offered which is paid to Participants through the local payroll.
Securities Laws and Regulatory Issues
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.
- For providing advice on prospectus requirements.
Approval from the Central Bank is required where funds are remitted abroad in connection with Awards, which is generally difficult to obtain.
Before grant, exercise.
Exchange Controls - Foreign Assets Reporting
Participants must report any change in holding of securities in an overseas Company to the central bank within 30 days of such change.
30 days grant, exercise, sale.
ERS Annual Return
Following the end of each tax year (5th April), and by 6th July, a return must be filed with HMRC in respect of share plans operated in respect of UK Participants during that tax year. Failure to file a return may result in a penalty.
- For assisting with preparing an ERS Annual Return (per Award type). This is an annual obligation.