- Original Poster
- #1
I joined a small-ish (<35 people) company 10 years ago during a period of rapid growth. At that time the company was in profit and regularly issued free shares and also more recently issued matching ones for any employee purchased shares under a HMRC approved SIP arrangement with an employee trust holding these shares.
At the time, the trust rules seemed fair enough and there were plans to have share dealing days etc. which unfortunately never happened.
Apparently, rules regarding leaving the scheme are in the event a “transfer notice” is served to the trust, if someone resigns for example, the share trust can buy the “purchased” shares at current value or has the right to defer purchase of these sharess for a few years. Free shares are apparently forfeited in this situation (unless made redundant or TUPEd).
Recently the company has not been doing so well and there is now the possibility I will be made redundant or will be TUPEd to another company. Legal staff have indicated they think that in the event I am made redundant or TUPEd, I will be serving a “transfer notice” however I cannot find this in the SIP documentation or company articles. Where would this be ?
Ideally as the shares are not worth a lot (company share value is 1% of their value a few years ago), and the shares I purchased are also not worth anything (worth around 5% of the cost I purchased them at), right now is not a good time to sell these shares. However in the event the company becomes profitable again I may have a significant shareholding.
I have had no communication from the share trust at all, including no information on ongoing value, given the opportunity to participate in company voting etc.
It is looking likely that the share trust will defer purchase of my shares for some time and I would guess I will get a bad price when they do.
Do I have any options here? Any advice or guidance greatly appreciated.
At the time, the trust rules seemed fair enough and there were plans to have share dealing days etc. which unfortunately never happened.
Apparently, rules regarding leaving the scheme are in the event a “transfer notice” is served to the trust, if someone resigns for example, the share trust can buy the “purchased” shares at current value or has the right to defer purchase of these sharess for a few years. Free shares are apparently forfeited in this situation (unless made redundant or TUPEd).
Recently the company has not been doing so well and there is now the possibility I will be made redundant or will be TUPEd to another company. Legal staff have indicated they think that in the event I am made redundant or TUPEd, I will be serving a “transfer notice” however I cannot find this in the SIP documentation or company articles. Where would this be ?
Ideally as the shares are not worth a lot (company share value is 1% of their value a few years ago), and the shares I purchased are also not worth anything (worth around 5% of the cost I purchased them at), right now is not a good time to sell these shares. However in the event the company becomes profitable again I may have a significant shareholding.
I have had no communication from the share trust at all, including no information on ongoing value, given the opportunity to participate in company voting etc.
It is looking likely that the share trust will defer purchase of my shares for some time and I would guess I will get a bad price when they do.
Do I have any options here? Any advice or guidance greatly appreciated.
