With over 40 years of experience, and providing services to 250 companies across Asia, we are committed to sharing insights into many aspects of share plans. Our experts will answer your questions, from multi-jurisdictional share plan management, financial reporting, trust set-up and management and more.

Cliff Huang
Vice President,
Computershare Plan Managers Asia

Once a company has opened a domestic SAFE account, what types of funds can be transferred in and out of it?

After completing the SAFE initial registration, the domestic agency shall open a dedicated SAFE account through their domestic bank with the SAFE approval issued by the local SAFE authority.

Only funds related to share incentive plans can be transferred through domestic SAFE accounts. Below are the types of funds that can be transferred into the account:

My company currently issues new shares to meet our Share Option plan's vesting requirements. Can we use existing shares instead? If so, what's the best way to facilitate this approach?

It's common practice for many companies in Hong Kong to issue new shares on the market to fulfil their share option plan needs. But many companies are unaware that this is not a mandatory requirement.

Are there specific share plans used depending on the stage and scale of company development?

There are no general rules or restrictions as to when your company should choose to implement share incentives. Every company will have different goals and size of employee population depending on what stage of development they are in. This will therefore drive the type of share plan that is most suitable for them.

What is the difference between a Share Option Scheme and Share Award Scheme?

When it comes to non-contributory employee share plans, there are two main options- Share Option Schemes (SOS) and Share Award Schemes (SAS). Both SOS and SAS are commonly used by companies to reward employees and are governed by Hong Kong Stock Exchange Listing Rules.

What is an employee share plan trust?

An employee share plan trust is a trust set up between the Company and the Independent Trustee for the purpose of acquiring and safekeeping of the Company's shares, under an employee share plan.

How can company "insiders" trade during the blackout period in the US market, given SEC restrictions?

It is common for corporate executives to use a 10b5-1 plan to ensure adherence to insider trading laws and to avoid any chance of accusations of insider trading in the US market.

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