Self-employed consultant becomes shareholder

Self-employed consultant becomes shareholder

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Client has a self-employed consultant who does some work for them. The guy is genuinely self-employed and has been for years, I don't think the employment status is in query.

Client has now decided to offer the guy the chance to buy into their company. Once he buys in he will become a director and work full time.

Am I right in thinking that the shares aren't employment related securities as he is getting them at a time when he isn't employed?
Elizabeth Moss

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By martinfoley07
02nd Aug 2007 17:17

no, unfortunately.....
..you are wrong.
From limited facts it sounds as if it's a pretty cast iron case ; the consultant is caught right in the centre of the cross-hairs.
He is receiving the shares in contemplation of employment.

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By User deleted
02nd Aug 2007 22:16

Thanks for the comment.

I actually took another look at the legislation after I posted and sadly came to the same conclusion. Still trying to think of a good way round it!

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