ESOP Trust Formation & Management

← Capital Structuring, Fundraising & ESOPs

An Employee Welfare Trust or ESOP Trust serves as an effective mechanism for implementing and administering employee equity incentive programmes. Properly established trust structures facilitate efficient acquisition, holding, transfer, and allocation of shares while ensuring transparent administration of employee benefits. We provide comprehensive advisory services relating to the establishment, governance, and ongoing administration of ESOP Trusts.

Our services include advising on the most appropriate trust structure, drafting trust deeds and governance documentation, facilitating trust registration, assisting in trustee appointments, and developing operational procedures for trust administration. We also advise on funding mechanisms, acquisition of shares, trust governance, accounting considerations, and regulatory reporting associated with employee benefit trusts.

Beyond establishment, we assist organizations in managing the day-to-day governance of ESOP Trusts, including documentation of trustee meetings, implementation of grant instructions, coordination with depositories and registrars, maintenance of trust records, and execution of share transfers. Our advisory extends to changes in trust structure, amendments to governing documents, and administration of corporate actions affecting trust-held securities.

Our objective is to establish governance-oriented trust structures that support efficient administration of employee equity programmes while protecting the interests of both employees and the organization.