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Employee Shares

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(@pammy1969)
Estimable Member
Joined: 14 years ago
Posts: 102
Topic starter  

My OH pays £25 a month to his employer (at source) to purchase shares in the company. He gets bonus shares etc, it's a 5 year deal and if he sells them within the 5 years, he'll have to give up the bonus shares. At the end of the 5 years, he can either keep investing them or sell them back to the company.

Our IP were made aware of all this and I sent them copies of the T&Cs etc. We've just received a letter from our IP saying "...you currently hold 173 shares with XXX, 71 of which are available to sell during the term of your trust deed." "I will require full payment of £955 before I am able to relinquish my interest in your shares."

If we can't find the money, they will sell the shares and collect the funds. Which means that OH will relinquish all the bonus shares. Making the last two years of contributions a waste of money.

We might be able to find this money but my question is this - if my OH continues to make contributions and buy more shares, will our IP just repeat this exercise every few months? Or does "relinquish my interest" mean for the remainder of the trust deed? I'm going to call them tomorrow about this but would be grateful for some advice on here first.

Pam


   
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Mark McFadyen
(@mark-mcfadyen)
Famed Member
Joined: 17 years ago
Posts: 4798
 

Hi Pam

In theory, yes they could. Best advice would be to try and get an agreement that they will discharge interest in future share or options on payment of the sum.

Mark

Mark is not posting regularly in the Trust-deed.co.uk forum.


   
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