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Sharing Ownership Products
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Our Products are stand-alone items that can be purchased separately – if you are
interested in groups of Sharing Ownership Products
packaged together to meet specific needs, go to the
Sharing Ownership Packages page.
Brash Solutions is not an ‘off-the-shelf’ product provider, and always ensures
clients’ particular commercial needs are properly taken into account. Invariably,
a client would first obtain Brash Solutions’ Sharing Ownership Services to
identify the right solution, and then a suitable Sharing Ownership Package may
be provided, followed by provision of one or more Sharing Ownership Products. |
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Contents
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Click on button below to
download excerpt:
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 Plan Rules
The legal document formally constitutes the Plan, and would set out among
other things:
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all rights and obligations of the participants in the Plan and the employer, and
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procedures for:
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distributing invitations, |
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conducting issues to participants, |
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calculating offer limits, |
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managing important ASX and Corporations Act requirements, such as escrow provisions and insider trading rules, |
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redemption of shares or options, |
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participation by contractors, |
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adjusting rules for overseas participants, |
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amending, suspending or terminating the Plan, |
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reporting to participants via Plan Statements, |
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appointing a Plan Administrator and ongoing administration of the Plan by the Plan Administrator, and |
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all other transactions contemplated under the Plan. |
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Board Minutes Approving the Plan
These are minutes that include the resolutions necessary to gain Board
approval of the establishment of the Plan. To ensure the Board is properly
informed, the minutes would contain appropriate background to the resolutions
including reasons for implementing the new Plan and a summary of the Plan’s
operation. |
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Letter of Offer
This Letter of Offer would comply with all ASIC requirements and usually
includes a textual overview of the operation of the Plan, and a schedule
containing provision for all the variables affecting the individual offer to
each employee. |
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Offer Acceptance
Brash Solutions Offer Acceptance is a template form for accepting the offer. It allows the employee to accept the offer in part or full in respect of each tranche offered, and binds the employee to the terms and conditions of the employee’s offer, the Plan Rules and the company’s Constitution.
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Board Minutes Approving Issue
These template minutes include resolutions approving offers under the Plan, and are drafted so that the subsequent issue of shares, units or options (and, if applicable, the issue of shares on the exercise of options) to each participant can happen automatically without needing any further Board approvals.
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Shareholder Approval Pack
The Shareholder Approval Pack would contain everything required to satisfy
regulatory requirements for approval of the Plan, including Notice of
Extraordinary General Meeting and Explanatory Memorandum. Should a review of the
company’s Constitution reveal that amendments to the Constitution are required,
the Shareholder Approval Pack would include any necessary amendments to the
Constitution. |
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| Contact Us
if you wish to discuss any of the above. |
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Plan Information Booklet
An explanatory booklet which includes:
- the purposes of the Plan,
- a summary of how the Plan works,
- a summary of the Plan Rules,
- a Q&A section covering most aspects of the Plan,
- a case study showing an example of participation, and
- instructions for participating (such as returning acceptance forms) and contact details for queries re Plan participation.
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Tax Booklet
A companion to the Plan Information Booklet, this 20+ page booklet sets out in
detail and in easy-to-follow language, the different tax outcomes under the
up-front tax and tax-deferred methods. |
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ESOP Ticklers
Ticklers are used at the very early stage of publicising the introduction of a Plan to employees and subject to being compliant with the Corporations Act, can offer an overview of the Plan and the reasons for its implementation. For maximum effect, ticklers can be distributed to employees with
ESOP Case Studies (outlined below) showing projected returns under the Plan.
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ESOP Case Studies
Case studies (and the accompanying analysis of the figures provided) can be useful to distribute to employees to give them an understanding of what to expect from the Plan. Case studies can be set out in tabular form and show cash flow and investment returns over a given period based on predetermined assumptions. In addition, the
What If? Simulator (outlined below) could be acquired and used to generate figures for subsequent case studies.
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ESOP Seminars
Brash Solutions experts can come to your place of business and address first-hand any questions your staff may have about the Plan.
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if you wish to discuss any of the above. |
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ESOP Administrator
Our ESOP Administrator is a Brash Solutions product that could enable a
small and medium-sized business to administer its own ESOP in-house. The ESOP
Administrator is an easy-to-use Microsoft Access database that tracks
employees’ holdings and any loans outstanding, and generates Plan statements and
administrative summaries on demand. |
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 Procedures Manual and Forms
Brash Solutions can prepare a Procedures Manual tailored to suit your Plan. The Procedures Manual and Forms and all other related advice would give the company and its Plan administrators a solid reference point in the implementation and ongoing administration of the Plan.
Implementation Timetable
A timetable outlining each of the steps required for the successful implementation of the Plan, whose responsibility it is to undertake each step, and associated deadlines.
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Issue Forms Pack
All forms necessary to implement an issue of options or shares, including:
- Option/Share/Unit Certificate,
- Notice of Exercise of Options (if applicable),
- Tax Election Form, and
- template Issue Letter enclosing the above forms.
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ESOP Plan Register
Our ESOP Plan Register spreadsheet is designed to separately track each offer in a consistent format, while aggregating the totals of all offers, and facilitating multiple offers in the future. As well as acting as a register, the
ESOP Plan Register automatically calculates how many securities can be issued without breaching the Plan’s limit and/or ASIC’s prospectus limit.
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ESOP/Issued Capital Register
As well as incorporating all the features of the Plan
Register (outlined above), our ESOP/Issued Capital Register allows the company to track all issues of shares, whether under the Plan or otherwise in order to track the applicability of the ASX’s 15%-in-12-months limit (especially for option plans given the complexity around the impact on this limit of options being issued, exercised or expiring).
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if you wish to discuss any of the above. |
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ESOP Simulator
Our ESOP Simulator would allow you to enter company and shareholder data to both simulate the effects of hypothetical issues (or track the effects of actual issues) under the ESOP over a five-year period from a business-wide perspective - and in particular, the effects of share issues and changes in company performance on the valuation of the company, its share price, and on the wealth of existing shareholders.
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ESOP Tax Simulator
Our ESOP Tax Simulator can be used in conjunction with the Tax Booklet
(outlined above) or as a stand-alone tool, for advising employees of their likely tax liabilities and after-tax outcomes under the Plan.
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Our Tax Simulator spreadsheet may be customised to cover any of the following scenarios:
- employees being taxed up-front versus on a tax-deferred basis,
- immediate issues of shares/options subject to achieving performance hurdles versus issuing them later on achieving performance hurdles,
- immediate sale of shares after acquisition versus selling shares 12 months or more after acquisition and hence qualifying for the CGT 50% discount concession, and
- exercising options versus redeeming them.
When used in conjunction with the Tax
Booklet (outlined above), the spreadsheet can generate figures so that with each new offer, an up-to-date tax example can be included in the booklet.
As a stand-alone tool, the spreadsheet can be used to give an employee some idea of the employee’s likely tax liability and future after-tax returns (depending on the assumptions used). The
Tax Simulator can also help employees make the right decision whether to opt for up-front taxation or tax-deferral.
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What If? Simulator
Our What If? Simulator calculates an employee’s after-tax position on exiting the Plan after a number of years –what the employee stands to make by joining the Plan (depending on the assumptions used). The
What If? Simulator can also be used to generate figures for ESOP Case
Studies (outlined above). |
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| Contact Us if you wish to discuss any of the above, or for more information on Sharing
Ownership, go to:
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