It’s a growing trend for companies to move towards a shared-ownership model and an employee ownership trust or EOTs can be a great vehicle for such a structure. An EOT involves creating a trust and transferring the shares from the company to it which are then held as a benefit for the employees.
Why should you choose an Employee Ownership Trust?
There’s a whole host of reasons that EOTs are becoming increasingly popular. Companies are looking towards EOTs not only off the back of taxation advice from their tax advisers and accountants but also because it can increase employee engagement and maintain a culture for the workforce. Who doesn’t want to feel invested in the place they work?! For exiting owners looking to sell, you may much rather have your current work force running the business than a buyer you don’t know.
How can CMP Legal help with EOTs?
The team at CMP Legal can help with advising on the reorganisation or restructurings that may be required, incorporating the employee ownership trust and drafting the trust deed, transferring the shares to the EOT and drafting the constitutional documents to manage the relationship between the trust, shareholders and the company. There are strict requirements for EOTs to benefit from certain tax reliefs and we will work closely with you and your tax advisers to ensure requirements are met.
Please get in touch using the contact form below to see how we can help your business with EOTs.
