Is This Your Situation — Making Employees Partners or Shareholders?

Admitting key employees as partners or shareholders is a very key decision and should be planned carefully. The issues are significant and far reaching.;

Here are some items that must be considered:

    How much ownership?
   What form of ownership? Options, stock, restricted options?
    wShould the ownership vest?

   A Buy-Sell agreement is a must -- even for option plans
    wWhat happens on death or disability?

    wWhat happens if the employee leaves?

    wBuy-back rights?

    wValuing the stock or options?

   Voting Considerations?
   Board Representation?

 

Contact us for guidance on these issues.
The impact is far reaching and permanent.

© Bizactions LLC.

 

Back to News