I have a client who is a limited company and he wants to grow his company to be a large entity and I believe having known him for a few years now that he will.
He want to incentivise the employees by issuing them with shares but he wants various clauses if the employees leave etc.
I wonder if any practitioner has used the services of a lawyer/accountancy company that specialises in this that is good and reasonably priced? Can any kind person offer a recommendation please.
Thanks in advance!
Replies (5)
Please login or register to join the discussion.
Yes, don't do it.Can any kind person offer a recommendation please.
Regarding "He want to incentivise the employees by issuing them with shares" in my experience, although this sounds great in theory, in practice it does nothing to achieve this aim and causes a whole load of hassle.
Concur
Issue not raised recently, But every time a client had the rules explained, the compliance issues and cost thereof the client chose not to get involved.
The kind of person that deals with this stuff on a regular basis will charge at eye watering rates.
The shares are worthless until the company is listed.
The employees will know this, making the client look a right prat
Not difficult to let client do a bit of research himself
'what is the value of minority holding in a small company'
https://www.stirling-uk.com/business-valuations-for-minority-shareholder...
Because a decent employee will do same
I'm less gloomy about this idea than Wanderer and Paul, but many more outcomes need to be thought through than 'employee leaves' and 'company floats'. Have your man look at the free guidance on employee shares that is available on any big firm's website. He needs to think through what he wants in much more detail, and he needs to sit down with someone to talk through what arrangements might best achieve his objectives. I do agree with Wanderer and Paul that this is extremely unlikely to be
issuing them with shares.