Case Study: Setting up Employee Benefit Trust for Travelogix Ventures Ltd

mlplaw has worked with Travelogix Ventures Limited (the Company) and its directors for a number of years. When the Company explored the possibility of setting up an Employee Benefit Trust (EBT), mlplaw was on hand to assist and guide them through the process.

Following discussions about the options and benefits of implementing an EBT, mlplaw and the Company devised a clear, phased plan. We prepared an in-depth summary framework outlining each step involved, which included:

1. The transfer of treasury shares to a new incoming shareholder

2. The setup of an employee share scheme, granting the incoming shareholder an option to purchase additional treasury shares at a later stage

3. The incorporation of a new EBT to buy and hold treasury shares in trust for the benefit of the Company’s employees

4. The transfer of treasury shares to the EBT for the benefit of employees

We advised the Company on all aspects of the treasury share transfers and on structuring the phased employee share scheme option. This also included the preparation of a deed of adherence to be signed by the new incoming shareholder. The corporate work was led by our corporate partner Rachel Owen, with support from solicitor Max McGenity.

In addition, we acted for the EBT itself and supported the Company with its incorporation. This involved drafting the trust deed and advising on its terms. The EBT and trust arrangements were led by our managing partner Stephen Attree, with solicitor Ella Coverley assisting.

Start date: November 2023
End date: February 2024

The team at Travelogix Ventures shared this feedback on the work:

“I am hugely grateful for everything you guys have done to lead us through this. We couldn’t do what we do without the support of partners like mlplaw and truly value our relationship with you. We wouldn’t want to go anywhere else.”
— Travelogix Ventures