shareholders’ agreement

Stock rights are distinct from employment contract rights

November 29, 2019 Jeff Dutton, Dutton Employment Law Employment/Labour Standards, HR Policies and Procedures, Human Resources, Payroll, Pensions and Benefits, Wages and Compensation, 0

It is the terms of an Equity Agreement, Shareholders’ Agreement or Stock Plan that determine employees’ rights with respect to shares. The common law relating to compensation for breaches of a contract of employment (i.e. reasonable notice) does not apply to shares where there is a distinct and separate agreement.

employment agreement, employment contract, employment law, employment standards act, shareholders’ agreement, stock options

OCA distinguishes employee rights v shareholder rights

August 26, 2019 Barry B. Fisher LL.B. Employee Relations, Employment/Labour Standards, Human Resources, Notice, Damages and Settlements, Payroll, 0

In Mikelsteins v Morrison Herschfield Ltd. (2019 ONCA 515) the Court of Appeal revised a trial decision where an executive was given 26 months notice. The Plaintiff, in addition to his salary, was a shareholder in this private company and as such received dividends from time to time.

employee shareholder, employee shares, employment law, shareholders’ agreement, termination

Shareholders’ agreement all that matters for shareholder rights in wrongful dismissal analysis

July 22, 2019 Sean Bawden Employee Relations, Employment/Labour Standards, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Payroll, 1

What happens to an employee’s rights under a shareholders’ agreement if the employee is wrongfully dismissed?

employment law, reasonable notice period at common law, shareholder rights, shareholders’ agreement, termination, wrongful dismissal

Appeal court finds compensation for loss during notice period trumps shareholders’ agreement

July 10, 2013 Stringer LLP Employee Relations, Employment/Labour Standards, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Payroll, Pensions and Benefits, Wages and Compensation

A recent decision by the British Columbia Court of Appeal highlights the importance of carefully crafting written employment agreements whenever shares are issued as part of employee compensation.