Bad Leaver/Good Leaver - Redundancy or Resignation - which should I choose?

waveneygnome

Sorry to hear of your situation, but I would also question the valuation you have put on the company, and don't get blinded by that figure.

If the company does not have the money to pay you/colleagues......how can it be worth £500k?

(unless it has loads of stock or buildings or machinery - tangible assets....which even then may not realise the £500k in a short/fire sale)

A flashy website, a rented office, leased cars, a few customers...but no money to pay wages.........does that make it a £500k company?

Most businesses are valued at multiples of previous years profits. There are loads of different ways of calculating this - and no one single answer/formula - the buyer will want to pay the least possible, and the seller the highest he can get.

But a very rough rule of thumb for small businesses is between 3 & 4 times previous years profits.

i.e profit last year = £166k x 3 = £500k

But ask yourself.......if the business did make £166k profit last year, why can't it pay wages?

getmore4less

amazon!
...

IT IP values different to normal business.

Annisele

I'm not a lawyer, so might very well be wrong - but I think it's hard to say whether you'd be a "bad leaver" without sight of the entire agreement. Part of it says bad leavers are people

1.1.3.2 who commits a material breach of the terms of this Agreement;

Without seeing all the terms, it's hard to guess whether resigning would breach them.

TBagpuss

On the face of it, it seems unlikely you could be a bad leaver.

If you resign, this may affect your entitlement to benefits s check where you would stand before making any decision.

You could then speak to the directors - explain tat you are aware of the financial difficulties the company is experiencing, and ask them whether they would be interested in a mutually agreed parting of the ways -you would be prepared to resign, saving them the cost of redundancy, and the need to go through formal proceedings which could unsettle other employees, in return, they agree to provide you with a suitable reference and confirm in writing that for the avoidance of any doubt you are not a 'bad leaver' and that your departure will not entitle the company to repurchase your shares.