Although primarily a method of improving corporate results through motivating employees, ESOPs have a role in corporate finance as a provider of capital in a highly tax efficient manner. Multinationals wishing to spread shares internationally and quoted companies wanting to capture equality for share incentives can successfully utilise an ESOP scheme and it is therefore anticipated that implementation of such schemes will follow the pattern of the US and will become a familiar tool of corporate finance. As the instrument is complex and new and its legal and accounting ramifications are wide,...