Commentary on Sections Overview Part 5: Free shares Paragraph 36: The holding period
3060.This paragraph states that the plan must require the company to specify a period (“the holding period”) during which a participant is bound to permit the free shares to remain in the hands of the trustees, and is bound not to dispose of the beneficial interest in those shares.
3061.This paragraph derives from paragraph 31 of Schedule 8. This paragraph has been placed somewhat earlier in this part of this Schedule, as the requirement set out in this paragraph applies whether or not the SIP makes provision for performance allowances (see paragraph 34(2)).
3062.Sub-paragraph (3) joins the two separate sentences in paragraph 31(3) of Schedule 8.
3063.Sub-paragraphs (4) and (5) divide the material presently contained in paragraph 31(4) of Schedule 8.