The company decides who can be granted depositary receipts. There are for instance companies on our platform which have chosen to provide depositary receipts to contractors or suppliers as well!
Find out more.Participants can pay in numerous ways for their participation (being depositary receipts, shares, options or SAR). Most commonly known and used on our platform are the following four possibilities in order of preference:
– own resources (participant transfers cash)
– compensated via normal salary (one or multiple pay checks)
– compensated via a bonus
– loan given by the company to the participant
The reason to put “own resources” first is because this is the way the tax authorities always look at a transfer of any form of participation. Especially shares and depositary receipts of shares immediately hold value on the day of transaction (often the start of the participation). Preferably you immediately pay for these so called “effects” be it either from their own savings or via an arrangement with the company.
Business Valuation is something you will encounter at some point in your company’s development, probably sooner than you think. For employees, the value of their participation in the company may be more relevant. It is easy to get caught up in all the jargon, but really it is rather simple and I’ll try to explain here how it works and how it can be done.
Read moreWhat is a holding company? Here at Share Council it’s a common question that deserves more explanation. We often come across this item when setting up employee participation structures. A holding is not obligatory for employee participation, but it may come in handy. Briefly put, a holding entails that one BV holds shares in one […]
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