Equity share to employers instead of salary. Is it possible?
I own a startup and wanted to give equity to new hired employees. We are a partnership firm with already 4 partners having a partnership deed and 25% stake each in the company. Now we want to hire employees and give them some stake from our equity. Is there a legal procedure of doing this? If yes, could you please guide us with the same?
You will have to execute two agreement, the first agreement will be between all four partners, wherein in the said agreement all the four partners will agree to give their percentage of stake to the employee.
Thereafter, you will have to execute an agreement with the employer, wherein you will have to state the equity percentage which you intend to give and other benefits .
- Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at LawRato.com and has been responded by one of the Corporate Lawyers at LawRato.com to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato.com or book a Detailed Consultation with a Lawyer of your choice to address your query in detail.
Get Started >>
Answers by Our Lawyers
- Company not allowing to serve full notice period
- Procedure for filing divorce and time involved in the same
- Can an individual reply to an Advocate's notice
- Sisters signed no claim documents can they claim share later
- Planning to start a new company and get funding then IPO