ACCA Advanced Taxation (ATX) Practice Exam

What type of employees can participate in the EMI scheme?

1. Only part-time employees

2. All employees regardless of role

3. Key employees

4. Seasonal employees

The correct answer is: Key employees

The Enterprise Management Incentive (EMI) scheme is designed to help small and medium-sized enterprises attract and retain talent by offering share options to employees. It is particularly focused on incentivizing key employees who significantly contribute to the growth and success of the company. Key employees generally include those who play a crucial role in the business, such as senior management or individuals who are vital to the operational or strategic direction of the company. Allowing only key employees to participate ensures that the incentive is targeted towards those most likely to positively impact the company’s performance. Other types of employees, such as part-time, all employees regardless of role, or seasonal employees, may not fit the criteria or the intent behind the EMI scheme, which is to provide rewarding incentives to those who hold significant responsibility or influence within the company.