Shareholder Agreement Termination Of Employment

[5] If you have any questions about an employee`s claims after termination, please contact e2r® to speak with an advisor. When shareholders agree that if one of them stops working with the company as an employee, their shares are bought back by the company, the question always arises: “how much”? If there are no explicit provisions, the company cannot help but negotiate a sale of shares or a share buyback if possible. Share sales and buybacks are linked to complications. There must be the money to buy it back. And if the shareholder knows that he cannot be forced to sell, he can take advantage of it to hold on for a price that is actually excessive. The Ontario Court of Appeal rendered an important decision on the treatment of shares at the end of the employment relationship. .