Document background
The Share Option Agreement is a crucial document used in Austrian corporate practice to formalize the grant of rights to purchase company shares at a predetermined price within a specified period. It serves as a key tool for companies to attract, retain, and motivate key personnel by offering them the opportunity to become shareholders. The agreement must comply with Austrian corporate law, particularly the Stock Corporation Act (Aktiengesetz) or Limited Liability Companies Act (GmbH-Gesetz), depending on the company structure. It is commonly used in start-ups, scale-ups, and established companies as part of compensation packages, requiring careful consideration of tax implications, securities laws, and corporate governance requirements. The document typically forms part of a broader equity incentive scheme and may need to align with existing shareholders' agreements and articles of association.
