The following Share Incentives practice note provides comprehensive and up to date legal information covering:
This Practice Note provides an introduction to:
why companies have employee ownership models
the main types of share ownership models, and
issues to consider when implementing a share scheme
For a more detailed analysis into why companies use share schemes, see Practice Note: Why do companies use share schemes?
Employee ownership typically happens in one of the following scenarios:
business succession or ownership succession—private owners, such as an entrepreneur or family business, decide to sell all, or usually, part of their share holdings to their workforce
insolvency or closure threat—employee buyouts can prove an effective route to recovery for businesses that might otherwise fail
independence—companies may decide that a significant and even majority employee stakeholding will demonstrate and help protect the company's independence
privatisation—the privatisation of various companies have provided occasional opportunities for employee buyouts, and
owner vision and incentivisation—as in the case of John Lewis or Arup Group, at the outset of the business or later on, the founder of a business opts for employee ownership. Alternatively, a smaller proportion of the equity in the business is made available to some or all employees in order to give them a stake in the business, incentivising them to stay and focus on corporate performance, and giving them a greater identity with the business and its brand
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
What is a res judicata?A res judicata is a decision given by a judge or tribunal with jurisdiction over the cause of action and the parties, which disposes, with finality, of a matter decided so that it cannot be re-litigated by those bound by the judgment, except on appeal.Final judgments by
Commercial Property Standard Enquiries (CPSEs) are industry standard pre-contract enquiries used in commercial property transactions. CPSEs are endorsed by the British Property Federation and are free to use. The CPSEs include specific environmental enquiries at enquiry 15 and there are several
This Practice Note discusses the common law doctrine of privity of contract; the equitable and statutory exceptions to it; how the doctrine affects enforcing a contract against a third party and what happens when, notwithstanding the lack of privity, a contract has an indirect effect on a third
For guidance on the basic features of the doctrine of estoppel and the different classifications it has been subject to, see Practice Note: Estoppel—what, when and how to plead and related content.Promissory estoppel—what is it?Where A has, by words or conduct, made to B a clear and unequivocal
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.