Shares issued by the company under esops option
Querist :
Anonymous
(Querist) 26 September 2011
This query is : Resolved
My husband is entitled to receive shares under ESOPS plan. He expired in Nov, 2009.
Due to family problems it took us quite some time to go for succession.
His empoyer was also not co-operating and giving the details of funds to be disbursed.
After constant query they have now disclosed that we are entitled for 1600 shares under ESOPS; but they say that it has to be claimed within 2 years after death of the employee.
If the succession is going to take time then what do we do?
Is it true that the claim period is 2 years. What can be done otherwise?
Please advise!
Sailesh Kumar Shah
(Expert) 26 September 2011
Period of '2 years' or other period shall be mentioned in ESOPS plan. you can check it.If you tell the name of company, i shall able to advise accordingly.
prabhakar singh
(Expert) 26 September 2011
Expert Shailesh Kr. Shah is right.
R.Ramachandran
(Expert) 27 September 2011
Please give the particulars to Mr. Shailesh to enable him to check the details.
In the meanwhile, you (i.e. the legal heirs) can lodge a formal claim for grant of the ESOPs. Once such a claim is lodged, the Company would ask you to produce necessary succession certificate. It is a process. You can get it within maximum 5-6 months. In any case, technically speaking, you would have met the condition of having staked the claim within 2 years of the death of your husband.
Querist :
Anonymous
(Querist) 27 September 2011
HE WAS WORKING FOR RELIANCE(RELIANCE INFO SOLUTIONS LIMITED-RISL). THE SUCCESSION / LOA IS ALREADY APPLIED, RISL IS NOT COOPERATING WITH US TO GIVE ANY BIT OF INFORMATION, WHAT ARE HIS DUES ETC ETC.
IF THE SUCCESSION COMES AFTER THE TENURE OF 2 YEARS OF ESOPS VALIDITY THEN WHAT??
RISL WAS SENT INNUMEROUS LEGAL NOTICES AND IN FEBRUARY 2011 THEY GAVE US A REPLY TO PROVIDE SUCCESSION CERTIFICATE AND THAT TOO WITHOUT ADVISING WHAT ARE THE DUES IN ACTUAL FIGURES... AFTER THAT WE HAVE APPLIED FOR SUCCESSION.
WHAT CAN BE DONE IF SUCCESSION COMES LATE SAY AFTER THE EXPIRY OF 2 YEARS OF ESOPS CLAIM ??
CLAIM MEANS CAN WE SEND A LEGAL NOTICE THRU LAWYER TO REVALIDATE THE SAME SAME TO FURTHER VALIDITY PERIOD.
ESPOS IS THEIR OWN THINGS / SHARES AND FOR THEM TO DO OR NOT IS NOT A BIG DEAL IT IS THEIR OWN CO. SHARES......
SHOULD WE SEND LEGAL NOTICE TO CLAIM ESOPS AND THEN ONCE THE SUCCESSION COMES AFTER THE 2 YEARS OF ESOPS VALIDITY IS IT OKAY ??
Sailesh Kumar Shah
(Expert) 27 September 2011
I check MCA Data, there is no existence of "RELIANCE INFO SOLUTIONS LIMITED".
May be Name change/amalgamation etc.
Querist :
Anonymous
(Querist) 27 September 2011
Sir,
Please check Reliance Industries Ltd. Everything is now merged into RIL.
Thanks!
Sailesh Kumar Shah
(Expert) 27 September 2011
Opinion given on Assumption that RISL is the subsidiary/group company of Reliance Industries limited.(RIL)
On dated 16/04/2007,Reliance Industries Ltd has informed the Exchange that " that in terms of the Company's Employees Stock Option Scheme, 2,87,28,000 Options, exercisable into equal number of fully paid-up equity shares of the Company, have been granted to Eligible Employees. The Options would vest based on the specified criteria. The Vesting Period would range between one to seven years from the date of the Grant and the Exercise Period would extend up to five years from the date of vesting. The Options not vested in the specified Vesting Period on account of not meeting the specified criteria and the Options vested but not exercised within the specified Exercise Period will lapse".
Source:http://www.nseindia.com/marketinfo/companyinfo/eod/announcements.jsp?symbol=reliance
Sailesh Kumar Shah
(Expert) 27 September 2011
So, As per information by RIL that "he Vesting Period would range between one to seven years from the date of the Grant and the Exercise Period would extend up to five years from the date of vesting."
Querist :
Anonymous
(Querist) 27 September 2011
Sir,
I've also gone thru the article given below.
Does this mean that the same can be exercised till April 2012? Please specify.
Thanks,
Reliance announces ESOPs for 18,000 employees
Suman Layak
Mumbai, April 15, 2007
Email to Author
First Published: 21:52 IST(15/4/2007)
Last Updated: 21:54 IST(15/4/2007)
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Reliance Industries Ltd has announced a jumbo employee stock option plan that will cover 18,000 employees from the top honchos down to junior management. The company has informed the stock exchange late on Saturday evening about the decision to offer 2.87 crore shares as a part of this stock
option plan.
The value of these shares at today’s price works out to a little more than Rs 4,000 crore.
According to industry estimates this would be the largest ever employee stock option plan for the manufacturing industry in India. While this is commonplace in many of the service sector companies, especially in the information technology services, in other sectors ESOPs are mostly restricted to the top management.
At the last annual general meeting of the company the shareholders had approved the employee stock option plan of Reliance Industries. The company’s board has the approval for issuing more than five crore shares through the scheme up to a maximum limit of five per cent of the company’s total equity capital.
The shares under the ESOP announced on April 14 will have a seven-year vesting period and the employees will get on an average five years for exercising their options to acquire these shares. The pricing will be under a pre-determined formula.
Details of how the 2.8 crore shares will be distributed among employees is not available. Recently, another manufacturing major Larsen and Toubro has allotted more than seven lakh shares through a stock option plan of which one per cent was allotted to the company’s directors.
Interestingly, Indian Petrochemicals Corporation Ltd, another Reliance group company already has employee shareholders who got their allotments as a part of the disinvestment process. Reliance too had acquired a controlling stake in the company through the process.
With the process of merger of IPCL and Reliance on the rails, the IPCL employee shareholders will also be allotted Reliance Industries shares in due course.
Querist :
Anonymous
(Querist) 27 September 2011
Thank you very much!
Sailesh Kumar Shah
(Expert) 27 September 2011
As per above mentioned information, write a letter to the company for clarification. If you any relating papers ESOPS Plan, put on this forum or email me. I shall reply you accordingly.
