City lawyer's share Bill moves closer to statute book

A partner at City firm Field Fisher Waterhouse this month saw a Bill he helped draft move a step closer to the statute book.

Graeme Nuttall drafted the Employee Shares Schemes Bill - which focuses on ways of encouraging companies to give their employees shares in the business - with Peter Townsend, lawyer for the Co-operative Party.

The Bill, introduced by Scottish Labour MP Mark Lazarowicz, has passed its second reading in the House of Commons and has now reached the committee stage.The legislation provides for the creation of democratic shareholder trusts aimed at looking after the interests of employee shareholders, as opposed to the current system where trustees are appointed by the companies.

It also proposes that the definition of eligible shares for share incentive plans be broadened, and the tax incentives for such plans changed to help finance the transfer of shares into employee ownership.Mr Nuttall said he is now confident that the Bill will become law as it received cross-party backing.Paula Rohan