Can The Subsidiary Use Form S-8 To Register Offers and Sales to Parent Employees Before the Spin-Off?
Form S-8 permits a reporting company to register offers and sales of securities to specified people under employee benefit plans. These people include: * employees of the reporting company’s parent; * employees of the reporting company’s subsidiaries; and * former employees of these companies if the Form S- 8 registers the offer and sale of shares underlying non- transferable options that were granted during their employment. 24 After the subsidiary becomes a reporting company – but before the spin-off occurs – the subsidiary may want to grant options to parent employees who will not be employees of the subsidiary after the spin-off. It will want to grant these options to make the parent employees financially “whole,” because the parent options those employees hold may lose value in the spin-off. A spun-off subsidiary often will want to use Form S-8 to register its shares underlying these options. We believe that the subsidiary may use Form S-8 to register the offer and sale of securit
Related Questions
- Can the Subsidiary Consider the Parents Reporting History When Determining Whether It Is Eligible to Use Form S-3?
- HOW DOES A PARENT COMPANY WHICH OWNS ONE OR MORE SUBSIDIARY FOOD PROCESSING PLANT(S) REGISTER EACH FIRM?
- Can The Subsidiary Use Form S-8 To Register Offers and Sales to Parent Employees Before the Spin-Off?
