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Share options were acquired at the date of grant and not when the shares vested

By Mark McLaughlin, December 2020

A right to acquire shares arose when the share option was granted and not when they vested, and shares issued on a share-for-share exchange were acquired ‘as a director or employee’ where the original shares were so acquired. 

The appellant was employed in the UK. In April 2001, he began discussions with another company about setting up a new entity in Bermuda. In November 2001, the new entity (‘AS’) started trading; the appellant was its president and chief executive. He was UK resident until November 2003. 

The appellant’s employment contract with AS dated 20 November 2001 was accompanied by a share option agreement, under which he was awarded options over 253,139 AS shares. The options were to vest in three equal tranches, on the

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