Ownership of shares on leaving a company

H

hop and solo

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I am leaving a private company where I received a small shareholding. The original agreement said I had to transfer back the shares to the MD for a nominal value when I leave the company for whatever reason. He has asked me to sign a share transfer agreement for this transfer. My question is am I obliged to do this?

I have read

There is no provision in the Companies Acts or in standard articles of association
which provide for the compulsory transfer of shares by a shareholder who ceases to be​
employed.

If this is the advice can I hold out on this?
 
Not AFAIK. You took the shares on foot of a contract (of employment?) you agreed to, therefore neither the Companies Acts nor the standard articles of association apply.

 
I didn't sign anything to say I agreed to these terms and I think the MD is aware it is underhand. Also with these conditions an easy way to get the shares back would be to sack me, although not what happened as leaving voluntarily.
 
He knows the terms aren't really fair and has mentioned it previously as someone else advised him to have this condition. Also why do I need to sign anything now if the terms say the shares would revert to the MD?
 
hop and solo said:
I am leaving a private company where I received a small shareholding. The original agreement said I had to transfer back the shares to the MD for a nominal value when I leave the company for whatever reason. He has asked me to sign a share transfer agreement for this transfer. My question is am I obliged to do this?

I have read

There is no provision in the Companies Acts or in standard articles of association
which provide for the compulsory transfer of shares by a shareholder who ceases to be​
employed.

If this is the advice can I hold out on this?
Click to expand...


What "original agreement"? Your contract of employment? The share purchase agreement? I'd sign nothing for now, and ask a solicitor to review the agreement you are referring to.

I fail to see how your employer, or former employer, can force you to surrender an asset that you own for a nominal value.
 
The agreement is very short it is just one paragraph stating I was given a certain number of shares that I would have to hand back if I left the company for whatever reason.
 
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