Speed Read: The following conclusions can be drawn from the recent Supreme Court case Grays Timber Products Ltd v Revenue and Customs Commissioners [2010] UKSC 4: Share rights that are purely personal to a shareholder will not affect the market value of shares for ITEPA 2003 Pt 7 Ch 3D. The questions of whether share rights in a shareholders' agreement which automatically benefit a purchaser are to be treated separately from the underlying shares when assessing the Chapter 3D market value and, if so, whether such rights are themselves separate employment-related securities, are still open. To avoid any Chapter 3D issues, the safest course is still to draft share rights as class rights in the articles.
