Background an executive The appellant (“Taxpayer”) was employed as director, company secretary and deputy chairman of a Hong Kong listed company pursuant to a written employment contract dated (“Company”) 20 July 2008 when he and 20 October 1999 (“Service Agreement”) until the Company entered into a written agreement to terminate the employment with immediate effect (“Separation Agreement”). During the course of the Taxpayer’s employment, depending no doubt upon the of his work performance over Company’s assessment the previous year and in the discretion of the Company, the Taxpayer was eligible for consideration for the grant of a discretionary cash bonus. From time to time, he was also granted share options by the Company under a share by it. Both the bonus option scheme (“Scheme”) adopted and the share options were provided by the Company as incentives to its employees to achieving better performances. Under the Scheme, at its discretion, the Company might offer an employee options to subscribe for shares in it (subject to the terms of the Scheme). The options granted in one year would, if the employee remained employed by the Company, vest (in annual tranches) over the following 5 years. In the event that the employee no longer remained with the Company, the unvested options might lapse depending upon the decision of the Company. On 20 July 2008, apparently due to disagreements within the board of the employment and Company’s directors (“Board”), Taxpayer’s offices within the Company came to an abrupt end. The termination of
Background The appellant (“Taxpayer”) was employed as an executive director, company secretary and deputy chairman of a Hong Kong listed company (“Company”) pursuant to a written employment contract dated 20 October 1999 (“Service Agreement”) until 20 July 2008 when he and the Company entered into a written agreement to terminate the employment with immediate effect (“Separation Agreement”). During the course of the Taxpayer’s employment, depending no doubt upon the Company’s assessment of his work performance over the previous year and in the discretion of the Company, the Taxpayer was eligible for consideration for the grant of a discretionary cash bonus. From time to time, he was also granted share options by the Company under a share option scheme (“Scheme”) adopted by it. Both the bonus and the share options were provided by the Company as incentives to its employees to achieving better performances. Under the Scheme, at its discretion, the Company might offer an employee options to subscribe for shares in it (subject to the terms of the Scheme). The options granted in one year would, if the employee remained employed by the Company, vest (in annual tranches) over the following 5 years. In the event that the employee no longer remained with the Company, the unvested options might lapse depending upon the decision of the Company. On 20 July 2008, apparently due to disagreements within the Company’s board of directors (“Board”), the Taxpayer’s employment and offices within the Company came to an abrupt end. The termination of
HCIA000002_2015.docx