First Reference company logo

First Reference Talks

News and Discussions on Payroll, HR & Employment Law

decorative image

shareholders’ agreement

Stock rights are distinct from employment contract rights

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.

 

, , , , ,

OCA distinguishes employee rights v shareholder rights

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.

 

, , , ,

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

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

 

, , , , ,

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

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.

 

, , , , , , , , , , , , , , , , , , ,