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SolicitorRM
SolicitorRM, Solicitor
Category: Employment Law
Satisfied Customers: 5413
Experience:  Director and Principal Solicitor. UK
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Company shares entitlement after redundancy.... I have

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Company shares entitlement after redundancy....
I have received a letter requesting that I sign and return a share buy back agreement.
The share value they are quoting is £0.01 per share for both C & E ordinary shares.
The letter states if I fail to sign the agreement the company is permitted under the articles to authorise any other Director of the company to sign the contract on my behalf.
I have a copy of the 'Articles' and of course my employment contract and letter from the company.
I'm seeking advice on my position.. ideally I would like someone with legal knowledge in this area to read over the documents and provide advise.
I have no idea where to check share price etc.
Thanks Lisa
Customer: replied 13 days ago.
I have attached the relevant. If you need to see sight of my letter of employment contract that is also available.
I look forward to hearing from you.
Many thanks
Lisa Fawcett
Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!

Good evening. Welcome to just answer and thank you so far for your patience. I can give you the general view that unless barred in the articles a company can exercise their right to but back shares as I would imagine it would be untenable to allow you to hang on to the shares when you are no longer an employee. The formulae for calculating the share value I would expect to be either in your contract of employment or in a document specifically dealing with your shareholding,

to review all the documents that you have attached JA offers a premium service for the review and guidance. Premium service are chargeable additional which charge is generally a fraction of what you would pay in private practice.
Any follow up please do not hesitate to send me your message, always glad to clarify. All the best

Customer: replied 11 days ago.
Thank you for your information.
Can you advise what the cost would be to do the premium service to review the documents sent and 2 more documents which are a Share Option Agreement (which are for B shares.. not C or E shares) & my contract.
Regards
Lisa

Hi, thank you for your message. To review formal documents JA charges a premium service I will ask them to send you the offer for your consideration.

Customer: replied 6 days ago.
Hi, They are only offering me £84 in shares so its a difficult decision to spend any money on this!
Here is a paragraph from my contract of employment.. I think this means i have no rights to shares upon termination. Am I right?19. RETURN OF COMPANY PROPERTY
19.1 On request by the Company and in any event on termination of her employment or on commencement of any period of exclusion pursuant to clause 20.2 the Executive will:
19.1.1 deliver up immediately to the Company all property (including but not limited to documents and software, credit cards, mobile telephone, computer equipment, facsimile machine, social media passwords used in accordance with clause 15.6, keys and security passes and any Confidential Information) belonging to it or any Group Company in the Executive’s possession or under her control. Documents and software include (but are not limited to) correspondence, diaries, address books, databases, files, reports, minutes, plans, records, documentation or any other medium for storing information. The Executive’s obligations under this clause include the return of all copies, drafts, reproductions, notes, extracts or summaries (however stored or made) of all documents and software, and any data stored on external sites such as contacts on social media; and
19.1.2 transfer without payment to the Company or as it may direct any shares or other securities held by her in the Company or any Group Company as trustee and deliver to the Company the related certificates,Many thanks Lisa

Good evening, it is understandable. Have you quoted this part correctly :  19.1.2 transfer without payment to the Company

Customer: replied 3 days ago.
Hi, this is lifted verbatim from my employment contract. In layman’s terms does this 19.1.2 clause mean I have to return shares after employment termination?
Many thanks
Lisa

Hi, thank you for your message and yes it means the company is entitled to transfer of the shares back to them without making any payment to you.

Customer: replied 3 days ago.
Hi,
Thought so! Then its not worth me pursuing this.
Thank you so much for your time and guidance.
Best Regards
Lisa

You are very welcome. All the best

SolicitorRM, Solicitor
Category: Employment Law
Satisfied Customers: 5413
Experience: Director and Principal Solicitor. UK
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