Roadmaps: planning ahead for difficult times
As part of the new language infiltrating our lives as a result of the current COVID measures, we are increasingly hearing more about the government’s “roadmap” for easing the country out of lockdown.
Planning in advance for difficult situations is always advisable. It allows time to consider and prepare for the different issues that might arise, ensuring there is clarity on actions to be taken. The same is true for companies.
If an employee who is also a statutory director leaves the company, it can be difficult to ensure that his appointment as a director also terminates at the same time. Likewise, a company may want to be able to ensure that an employee who holds shares is obliged to transfer those shares back to the company or to another shareholder at the time they leave. In each case, if terms relating to such matters are not agreed in advance and set out in writing, such as in a service agreement, articles of association or shareholders’ agreement, it can be very difficult to agree terms at the time of exit, especially if the termination of employment is in any way acrimonious.
We know that it can be difficult to have these conversations, but if you have not yet planned for these eventualities, please do contact our Head of Corporate, Liz Barton at firstname.lastname@example.org or +44 (0)20 7778 7238 and we’ll let you know how we can help.
The articles published on this website, current at the date of publication, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your own circumstances should always be sought separately before taking any action.