Share option pool in UK template of articles of association
posted 3 years ago
Suppose person A wants to incorporate a company in the UK, hold all shares, and include the option to issue shares to other people, such as "late co-founder" B or early employee C. Founder A may want to give B and C shares in order to align incentives, or for another reason. One mechanism in the United States is an option pool. For example, if the startup has 5,000,000 shares of common stock outstanding, it may elect to authorize 1,000,000 shares to be issued pursuant to the plan.
In this scenario, founder A would keep the option of giving 1 million shares to late co-founder B or early employee C. The UK's standard articles of association don’t mention such an option pool. Does the UK have an equivalent option, similar to the US?