The answer is fairly simple: it depends on the rules you set as a company. Most of the time the following rules account:
1. When a employee leaves on good grounds they can sell back their shares for the price at that moment. The company does have a fairly long payment term because it should not bring the company in financial bad weather;
2. When a employee leaves as a “bad leaver” (fired on the spot for lawful reasons), they either get the actual cash back they once invested (we pretend the investment never happened) or they get nothing at all;
3. Some companies (like Share Council) allow everyone to keep their shares, we believe it is the best way to have and keep a large ambassador network. A conclusive answer to this question is found in the Trust Conditions that apply to your participation.
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 more
What 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 […]Read more
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