THE EMPLOYEE SHARE TRUST - OPERATION

Employee Share Trust Diagram

Steps

  1. Employer makes loans or contributions to the EST.
  2. The EST makes an offer to selected Participating Employees nominated by Employer of units in the EST and an interest-free loan to acquire those units.
  3. The EST subscribes for shares in Employer. The EST then offers Share Units in the EST to the Participating Employees.
  4. The employees subscribe for Share Units, funded by way of the interest-free loan.

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