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Ben Jones
Ben Jones, UK Lawyer
Category: Law
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If a major shareholder sells a company, does TUPE stand for

Resolved Question:

If a major shareholder sells a company, does TUPE stand for the remaining Directors and Shareholders ?
Submitted: 1 year ago.
Category: Law
Expert:  Ben Jones replied 1 year ago.

Hello, my name is***** am a qualified lawyer and I will be assisting you with your question today. Are these people also employees of the company?

Customer: replied 1 year ago.

yes Ben they are

Expert:  Ben Jones replied 1 year ago.

Is the sale one of the shares of the company? I presume the shareholder sells their shares to the new owners?

Customer: replied 1 year ago.

The Shareholder is selling his 70% of shares and the remaining Shareholders hold 30% each and will retain their Jobs and positions and Shareholding.

Expert:  Ben Jones replied 1 year ago.

Thank you. There is usually no TUPE transfer on the sale of a company through its shares because technically there is no change of employer, just a change of ownership. However, it is not always as simple as that and there have been examples when share sales have amounted to a UPE transfer. Each case is decided on its own facts though so for an example of when that happened, together with the factors that made it into a TUPE transaction, see here:

http://www.shepwedd.co.uk/knowledge/when-can-share-sale-lead-tupe-transfer-0

So generally no, there is no TUPE transfer when it is just the shares that are sold, but in limited circumstances there could be a valid transfer, although only a court can decide if that is the case.

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