Shares for rights: an opportunity for private equity?
The recent news that eight members of private-equity-backed Whitworths’ management team are being offered ‘shares for rights’ by their private equity owner may be an indication of things to come.
Under the new scheme, contained in section 31 of the Growth and Infrastructure Act 2013, and which came into force on 1 September 2013, employees can give up their right to claim unfair dismissal (except for reasons that are automatically unfair, such as discrimination), the right to request flexible working, the right to statutory redundancy pay and certain other statutory employment rights, in return for shares in their employer (or its parent company) worth at least £2,000.
The scheme is open to all employees although clearly the scheme is better suited to senior employees than it is to junior staff. Senior management are unlikely to bring an unfair dismissal claim in any event — and will have contractual protection — so have little to lose and potentially plenty to gain by agreeing to become an ‘employee shareholder’. Anyone can apply for an ‘employee shareholder’ position, although they cannot be forced to accept the status if they do not want to…
If you are registered and logged in to the site, click on the link below to read the rest of the Walker Morris briefing. If not, please register or sign in with your details below.
News from Walker Morris
News from The Lawyer
Briefings from Walker Morris
Ofgem and DECC have jointly published an action plan of measures to encourage the growth of independent energy suppliers.
The Finance Act 2014 will change the economics of using tax avoidance schemes by requiring payment of disputed tax upfront in cases involving numerous marketed tax management schemes,
Analysis from The Lawyer
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.
New EU rules and lawyers’ increased comfort with digital formats are sparking a sea-change in the way law firms manage their documents