Difficulties with the company stock option scheme introduced this year would be addressed in the next Finance Bill, the Minister for Enterprise, Trade and Employment, Ms Harney, said yesterday. She was replying to concerns raised by the president of Parthus Technologies, the Dublin-based chip design company, which officially opened a new research and development centre in Limerick.

Mr Kevin Fielding said amendments were necessary to make the tax break scheme for employees more workable. There were just two companies in the State which had their stock options schemes approved. "This is because many companies do not fulfil many of the conditions required within the legislation," he said. Ms Harney agreed there were difficulties with the scheme.

"I think we should address them [the difficulties] in the Finance Bill," she said. Mr Brian Geoghegan, an IBEC director, said the "similar terms" provisions were demanding in some cases, particularly where options were being allocated on a performance-related scheme.

Mr Fielding added that some of the problems related to cases where stock option plans were devised prior to the current legislation being drafted. There was also a difficulty with the language of the Finance Act. "It is very difficult for people to steer through it because some of the language is very subjective. We need some of the language tidied up."

The Parthus centre in Limerick, based at the National Technological Park in Plassey, employs 30 people in developing wireless protocols chip design layouts for next generation mobile phones.

Separately, yesterday, Parthus Technologies received shareholder approval at an extraordinary general meeting yesterday for the acquisition of the 20 per cent minority shareholding in Silicon Systems Design Limited held by STMicroelectronics.

Silicon Systems Design is the original Parthus/STMicroelectronics company which undertakes internet protocol creation activities for STMicroelectronics. Before the e.g.m., Parthus had owned 80 per cent of the company.

Under the terms of the agreement Parthus acquired the remaining interest in Silicon Systems Design for $12.9 million (€15.22 million) in cash and 18.36 million shares, which equals a 3 per cent shareholding in Parthus.

The 3 per cent equity consideration was satisfied through the issue of new ordinary shares which was approved at the e.g.m.