Employee Stock Options (ESOP): FAQ Series (IV)

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  • June 11, 2021

Welcome to the final (IVth) part of our FAQ Series on ESOP.

In this part, we are discussing the queries on the tax liability and who is liable, what is Stock Appreciation Rights and aspects regarding exit due to employee resignation or merger / acquisition of the Company.

The key queries addressed are:

  • ·         Is there any tax liability on grant /vesting / exercise of options and who is liable?
  • ·         What happens if an employee resigns or his employment is terminated?
  • ·         What happens to ESOP Plan if the start-up is merged or acquired by another company?
  • ·         What is Stock Appreciation Rights (SAR) and will any plan offering SAR be treated as ESOP?
  • ·         Whether creating an Employee Trust necessary to implement ESOP Plan?

Hope you this FAQ Series helped. In the event of any query/clarification or assistance on ESOP’s, please feel free to connect at interact@linkjuris.com.

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