This is found in the Employment Rights Act 1996 (‘ERA’), s. 205A, inserted by the Growth and Infrastructure Act 2013, s. 31.

An individual who is or becomes an employee of a company is an ‘employee shareholder’ if:

(a)the company and the individual agree that the individual is to be an employee shareholder;

(b)in consideration of that agreement, the company issues or allots to the individual fully paid up shares in the company, or procures the issue or allotment to the individual of fully paid up shares in its parent undertaking, which have a value, on the day of issue or allotment, of no less than £2,000;

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