{"id":31670,"date":"2019-07-22T17:43:52","date_gmt":"2019-07-22T09:43:52","guid":{"rendered":"https:\/\/zegal.com\/shareholders-resolution-to-adopt-share-option-plan\/"},"modified":"2024-12-27T17:34:35","modified_gmt":"2024-12-27T09:34:35","slug":"shareholders-resolution-to-adopt-share-option-plan","status":"publish","type":"page","link":"https:\/\/zegal.com\/en-au\/shareholders-resolution-to-adopt-share-option-plan\/","title":{"rendered":"Shareholders&#8217; Resolution to Adopt Share Option Plan"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">A <\/span><b>Shareholders\u2019 Resolution to Adopt Share Option Plan<\/b><span style=\"font-weight: 400;\"> is a resolution by the shareholders of a company to approve the adoption of an Employee Share Option Plan (ESOP).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When a company decides to incentivise or reward its employees for their contributions to the company by giving them an option to purchase the company\u2019s shares (share options or stock options). They will create a Employee Share Option Plan (ESOP) to lay out the terms and conditions under which they can award an employee such share options. The Board of Directors of the company first approves the plan (ESOP). Subsequently, the Shareholders of the company approve and adopt the plan. This adoption by shareholders happens through a <\/span><b>Shareholder\u2019s Resolution to Adopt Share Option Plan.<\/b><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_a_Shareholders_Resolution_to_Adopt_Share_Option_Plan\"><\/span><b>What is a <\/b><b>Shareholders\u2019 Resolution to Adopt Share Option Plan?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">This is a resolution by the shareholders of a company to approve the adoption of an Employee Share Option Plan (ESOP).<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"When_do_you_use_a_Shareholders_Resolution_to_Adopt_Share_Option_Plan\"><\/span><b>When do you use a <\/b><b>Shareholders\u2019 Resolution to Adopt Share Option Plan?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">When a company decides to incentivise its employees by allowing their participation in stock options or share options, it creates a Employee Share Option Plan (ESOP). Essentially, this is to lay out the terms and conditions under which an employee can get such share options. Also,\u00a0 what such share options will constitute. The Board of Directors of the company plan (ESOP) first approves and then presents to the shareholders for their approval. The Shareholders of the company then give the final approval to the Plan to be adopted by the company. This approval and adoption by the shareholders are made effective through a Shareholder\u2019s Resolution, which is when this document<\/span><span style=\"font-weight: 400;\">\u00a0is used.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_use_a_Shareholders_Resolution_to_Adopt_Share_Option_Plan\"><\/span><b>How to use a <\/b><b>Shareholders\u2019 Resolution to Adopt Share Option Plan?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are two options<\/span><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">if a general meeting (i.e. a meeting of shareholders) is convened to make this decision, use a <\/span><b>Minutes of a General Meeting to Adopt Share Option Plan<\/b><span style=\"font-weight: 400;\">; or<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">if the company has only one shareholder or the shareholders choose to pass the resolution by way of a written resolution, use a <\/span><b>Written Resolution to Adopt Share Option Plan<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"What_to_include_in_the_resolution\"><\/span><b>What to include in the resolution?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Details of the meeting (if using Minutes);<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Date of passing the resolution;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Purpose of the share option plan;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Class of shares to be issued under the plan;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Eligible grantees;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Maximum number of shares issuable upon exercise of all options; and<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Validity of the share option plan.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Notes_on_signing\"><\/span><b>Notes on signing<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The <\/span><b>Minutes of a General Meeting to Adopt Share Option Plan<\/b><span style=\"font-weight: 400;\"> should be signed by the chairperson of the meeting.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The <\/span><b>Written Resolution to Adopt Share Option Plan<\/b><span style=\"font-weight: 400;\"> should be signed by all the shareholders.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"You_Might_Also_Like\"><\/span>You Might Also Like<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Along with this document, make sure you see these other templates in our library:<\/p>\n<ul>\n<li><a href=\"https:\/\/zegal.com\/en-au\/shareholders-agreement\/\">Shareholder Agreement<\/a><\/li>\n<li><a href=\"https:\/\/zegal.com\/en-au\/option-agreement\/\">Option Agreement<\/a><\/li>\n<li><a href=\"https:\/\/zegal.com\/en-au\/option-agreement\/\">Employee Option Repurchase Agreement<\/a><\/li>\n<li><a href=\"https:\/\/zegal.com\/en-au\/share-appreciation-rights-plan\/\">Share Appreciation Rights Plan<\/a><\/li>\n<li><a href=\"https:\/\/zegal.com\/en-au\/share-option-plan\/\">Share Option Plan<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>A Shareholders\u2019 Resolution to Adopt Share Option Plan is a resolution by the shareholders of a company to approve the adoption of an Employee Share Option Plan (ESOP). When a company decides to incentivise or reward its employees for their contributions to the company by giving them an option to purchase the company\u2019s shares (share [&hellip;]<\/p>\n","protected":false},"author":174,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":[13566],"meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"usecases":[13751],"class_list":["post-31670","page","type-page","status-publish","hentry","template-shareholder-matters","usecases-communicate-with-shareholders"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Shareholders&#039; Resolution to Adopt Share Option Plan | Zegal<\/title>\n<meta name=\"description\" content=\"Create a document using our template for Shareholders&#039; Resolution to Adopt Share Option Plan | Zegal\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/zegal.com\/en-au\/wp-json\/wp\/v2\/pages\/31670\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Shareholders&#039; Resolution to Adopt Share Option Plan\" \/>\n<meta property=\"og:description\" content=\"Create a document using our template for Shareholders&#039; Resolution to Adopt Share Option Plan | Zegal\" \/>\n<meta property=\"og:url\" content=\"https:\/\/zegal.com\/en-au\/shareholders-resolution-to-adopt-share-option-plan\/\" \/>\n<meta property=\"og:site_name\" content=\"Zegal Australia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/getzegal\/\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-27T09:34:35+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/zegal.com\/wp-content\/uploads\/2023\/09\/zegal-logo-red.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"627\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@getzegal\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/shareholders-resolution-to-adopt-share-option-plan\\\/\",\"url\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/shareholders-resolution-to-adopt-share-option-plan\\\/\",\"name\":\"Shareholders' Resolution to Adopt Share Option Plan | Zegal\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/#website\"},\"datePublished\":\"2019-07-22T09:43:52+00:00\",\"dateModified\":\"2024-12-27T09:34:35+00:00\",\"description\":\"Create a document using our template for Shareholders' Resolution to Adopt Share Option Plan | Zegal\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/shareholders-resolution-to-adopt-share-option-plan\\\/#breadcrumb\"},\"inLanguage\":\"en-AU\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/zegal.com\\\/en-au\\\/shareholders-resolution-to-adopt-share-option-plan\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/shareholders-resolution-to-adopt-share-option-plan\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Legal Templates\",\"item\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/all-docs\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Shareholder Matters\",\"item\":\"https:\\\/\\\/zegal.com\\\/en-hk\\\/template\\\/shareholder-matters\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Shareholders&#8217; Resolution to Adopt Share Option Plan\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/#website\",\"url\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/\",\"name\":\"Zegal Australia\",\"description\":\"Need legal? 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