Will I have to sell shares, upon termination of employment.

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Will I have to sell shares, upon termination of employment.

I’m leaving my full time management position with a business, with whom , I own
shares in. Upon receiving my letter of resignation, I was told that I would have to
sell back my shares and that owning them was only applicable if I was employed.
In addition to this I know that other share owners have left the company and still
maintained ownership of their shares. What should I do?

Asked on February 7, 2017 under Employment Labor Law, Indiana

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

The CEO's personal lawyer is incorrect: if you own shares, you own them--there is no obligation to sell them back unless you signed a written agreement stating that you sell them back on termination of employment. Without such an agreement, you might *choose* to sell them back--but it's your choice; if they want the shares back, they should make it worth your while to sell them. Shares are property: you don't have to sell or otherwise give up your property unless you had agreed to.


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