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Stock sharing option In a company
14-Sep-2023 (In Corporate Law)
I am having a person join my company (already established) as Key Executive with some capital and would get the stocks in lieu of the capital and her work. What are the ways I could do that, in order to make sure the new entrant does'nt get the ownership (decision making power for company). { What and how should it be like, ESOP, Equity or something else) [it's a private limited company]
Dear Sir,
Thank you for your e-mail. If the incoming person is injecting capital you can issue equity share proportionate to the capital invested or you may simply allot ESOPs with minimum vesting period of three years or five years. We can assist you with both including drafting of the required documentation.
Best Regards,
Saurabh
Thank you for your e-mail. If the incoming person is injecting capital you can issue equity share proportionate to the capital invested or you may simply allot ESOPs with minimum vesting period of three years or five years. We can assist you with both including drafting of the required documentation.
Best Regards,
Saurabh
Helpful?
22+
22+
Adv. Saurabh Kumar
Delhi | 25+ Answers
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Dear Sir
Thank you for your email. You should consider creating an ESOP scheme. This will help you give out ESOPs to not only this specific employee but also future key employees. ESOPs are basically shares that are given to an employee over a specific period of time in recognition of his/her work. You can structure the ESOPs in such a manner that the Shares are given at periodic intervals. Please call us and we can create and help you implement the most suitable plan.
Thanks
Sanjeet
Thank you for your email. You should consider creating an ESOP scheme. This will help you give out ESOPs to not only this specific employee but also future key employees. ESOPs are basically shares that are given to an employee over a specific period of time in recognition of his/her work. You can structure the ESOPs in such a manner that the Shares are given at periodic intervals. Please call us and we can create and help you implement the most suitable plan.
Thanks
Sanjeet
Helpful?
17+
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Adv. Sanjeet Kumar Thakur
Delhi | 25+ Answers
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Giving a share to someone for the capital which he or she is going to invest in the company is surely going to give him or her a say in the decision making for the company affairs. Denying him or her this right is wrong done to him to her.
If you wanted to have an arrangement wherein you are willing to obtain money from the concern without giving him/her right in the company then you should get that money under an investment scheme under which you will be obliged to return that money along with the interest on which will make the money double or triple in a certain period of time depending upon the interest you have levied on.
Or you can also have an option of sweat equity shares or ESOP etc.
If you wanted to have an arrangement wherein you are willing to obtain money from the concern without giving him/her right in the company then you should get that money under an investment scheme under which you will be obliged to return that money along with the interest on which will make the money double or triple in a certain period of time depending upon the interest you have levied on.
Or you can also have an option of sweat equity shares or ESOP etc.
Helpful?
20+
20+
Adv. Pulkit Prakash
Delhi | 400+ Answers
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