Company shares

Monkey_Man_2

Hi all,

I've been reading the site & forum for some time (lurking ) but have not posted until now. I'm hoping someone can help me with an issue I'm having at work.

Several months ago I was awarded 10% shares in the company I work for, but am still waiting for documentation or any kind of evidence to support the shares. When I have brought this up with my boss the usual answer is "Its all done electronically you don't get a share document like the old days". I don't want to stir things up, but at the same time surely there should be evidence of some kind?

The business is not on the stock market & I'm not sure how I could check on the shares.

I hope someone can enlighten me!

Cheers

sunil1234

Monkey_Man wrote: »

Hi all,

I've been reading the site & forum for some time (lurking ) but have not posted until now. I'm hoping someone can help me with an issue I'm having at work.

Several months ago I was awarded 10% shares in the company I work for, but am still waiting for documentation or any kind of evidence to support the shares. When I have brought this up with my boss the usual answer is "Its all done electronically you don't get a share document like the old days". I don't want to stir things up, but at the same time surely there should be evidence of some kind?

The business is not on the stock market & I'm not sure how I could check on the shares.

I hope someone can enlighten me!

Cheers

Well when you were awarded them did you recieve any correspondence?. Perhaps you can gently put your reminder in writing as a nudge?

Monkey_Man_2

Thanks for you response, No correspondence unfortunately - the shares were awarded in an appraisal type meeting so only verbally.

The lack of written confirmation of the shares is a large part of the issue - in the past any pay rise has been accompanied with a letter.

I'm a little reluctant to write a letter as it is a very small business <5 employees and I'm not sure how it would go down. That said it may come to this as whenever I ask about it the boss dodges the question.

I've never had shares before and am unsure as to what the 'proper' process is & how I can check if I have indeed been granted shares. I feel like I need to know the ins and outs before confronting the boss again.

Thanks again,

Monkey

Kohoutek

Your boss is right that share certificates are unnecessary (unless the shares are a very unusual type of shares called bearer shares).

A share certificate is evidence that you have an ownership interest in the company, but your ownership stake in the company actually derives from the entry of your name and address on a company document called the register of members.

If you really want to check, ask your boss (or more appropriately the company secretary if there is one) to see the register of members.

cashbackproblems

Your right to ask for proof as 2 years down the line they can deny that they ever offered you a stake. Tho surely if its there are less than 5 people and you have been given a stake you have more of a say on how the company works and its processes? It sounds dodgy to me, if the company is in debt or risk of bankrupsy your ownership will have no value and you will be the last to be paid off.

opinions4u

Is this a limited company?

Regardless, you do need something in writing, and if you haven't got it, you almost certainly don't own it.

Why did they "give" you 10% ownership? Were they refusing you a pay rise or something?

Sounds to me like somebody is pulling the wool over your eyes. This could turn nasty.

Reaper

I suggest you start gently, no need to antagonise them (yet).

If it were me I would ask if they could put in writing the number of shares to back up future tax returns. Not that you really need it right now but if they started paying dividends or floating them on the stock market you would, so it is a good excuse.

Monkey_Man_2

Thanks for your replies.

It is a limited company and I have received monthly dividends based on 10% of forecasted profit. These have appeared as an amount in my current account from the same account the wages are paid from. I have not received these for the last 2 months.

These shares were given instead of a pay rise and I accepted them at the time (I wondered if I would get anything at all recession n all).

I have an appraisal coming up so perhaps I can ask for written confirmation of the number of shares then as Reaper suggests. Regardless of what happens I will be asking for a concrete pay rise next time. Not worth the stress!

Many thanks to all those who replied, I will let you know what happens!

Cheers,

Monkey

Kohoutek

Monkey_Man wrote: »

I have an appraisal coming up so perhaps I can ask for written confirmation of the number of shares then as Reaper suggests. Regardless of what happens I will be asking for a concrete pay rise next time. Not worth the stress!

Just ask to see the company's register of members. It is the only document that conclusively proves the extent of your ownership of the company. A piece of paper 'confirming' the number of shares you hold is not valid legal evidence that you are a shareholder.

It will give the names, addresses and precise shareholding of each shareholder (member) of the company.

Sceptic001

Monkey_Man wrote: »

It is a limited company and I have received monthly dividends based on 10% of forecasted profit. These have appeared as an amount in my current account from the same account the wages are paid from. I have not received these for the last 2 months.

Maybe start by asking for written details of the amounts already paid to you as you will require these details for tax purposes.