Difference between shareholder status & employee
An employee is an individual who works under a contract of employment—an agreement that outlines the terms and conditions of their working relationship with the employer, including the rights and responsibilities of both parties.
An employee shareholder, however, is both an employee and a shareholder in the company.
What is an employee shareholder agreement?
An employee shareholder agreement is a legal contract between a company and an employee who is also a shareholder. It sets out the terms under which the employee holds shares, their rights as a shareholder and their obligations to the company. These agreements can include provisions regarding voting rights, dividend entitlements, share transfers and restrictions on selling shares.
Such agreements are particularly useful in businesses that offer share incentives as part of their remuneration packages. They ensure that all parties have a clear understanding of their roles and responsibilities while providing mechanisms to resolve potential disputes.
How we can help
Our solicitors have extensive experience in drafting and advising on employee shareholder agreements. We work closely with businesses to understand their unique needs and develop tailored agreements that protect both the company and the employee's interests.
We can assist with:
- Drafting bespoke employee shareholder agreements
- Reviewing and negotiating existing agreements
- Ensuring compliance with employment and company law
- Advising on share entitlements, restrictions and transfer provisions
- Providing guidance on dispute resolution related to shareholder rights
Why choose us?
Our firm is committed to providing expert legal services in employment and company law. Our team of solicitors has in-depth knowledge and experience in advising businesses on complex employment agreements. We take a strategic and proactive approach to ensure that your employee shareholder agreement is legally sound and fit for purpose.
We take pride in our professional accreditations and industry recognition. Our firm has received accreditation from The Law Society in employment law, demonstrating our expertise and commitment to high legal standards. Additionally, members of our team are recognised by the Legal 500 and Chambers & Partners for their outstanding work in employment law.
Contact us
If you require legal advice on an employee shareholder agreement, get in touch with our expert team today. We offer tailored solutions to meet your business objectives and ensure full compliance with relevant laws.
Contact us to schedule a consultation and find out how we can help you protect your business and employee relationships. Call us on 0161 696 6170 or fill out our online enquiry form, and a member of our team will be in touch shortly.
