Employee shareholder agreements — the potential gains
Since September 2013, employee shareholder agreements have enabled companies to introduce a new type of employment status into their workforce.
By entering into an employee shareholder agreement, an individual will acquire employee shares (worth at least £2,000 at the time of acquisition) in the company employing them or in its parent undertaking. In return for the employee shares, the individual entering into the employee shareholder agreement will forgo and vary limited, specific employment rights.
Employee shareholder agreements have become increasingly popular with start-up businesses and private equity companies that expect to make substantial capital gains in a short to medium period of time. In particular, many new investment companies are identifying employee shareholder agreements as a way to attract and incentivise employees to produce good results. This is because good results are likely to increase the value of the company and, in turn, the value of the employee shares will increase…
Click on the link below to read the rest of the Winckworth Sherwood briefing.
News from Winckworth Sherwood
News from The Lawyer
Briefings from Winckworth Sherwood
The Court of Appeal recently handed down a decision that will be welcomed by consultants and developers alike.
The tenant’s right of first refusal was introduced to prevent landlords from selling the reversionary interest in a tenant’s flat without the tenant’s knowledge.