A company changes while owning shares in it?

Question

I worked for a company and the Director gave me a verbal agreement to own a share in it. However, I never received a share certificate, as was promised.

I knew the company wasn't performing particularly well, and since I left, I've noticed that they have either sold the business or changed it's name (via the Companies House website). I've never received any communication about this.

I know who the businesses accountants are who, presumedly, arranged for the share option to be effected. Would it be advisable to approach them to find out about my share certificate and, if so, how I am affected?

I would approach the Director as I had to leave (redundancy and left on good grounds) but I have a suspicion that they are trying to evade this.

Answer 1

Do you own shares or were you granted options? If options as you say in the latter part of your question you would more than likely lose them if you leave the company (for any reason, they are usually referred to as employee options). You would not have a certificate you would have to have an option agreement showing you the exercise price and the terms. Bear in mind options may have zero value until they reach thier conversion period. And then they may be worth nothing (underwater) or something. With small companies it is usually the former. Also was the company listed?

As they say you have two hopes, Bob Hope and no hope.

Answer 2

Your best bet is probably to consult a lawyer. A lot of people recoil at the perceived expense, but in your case, I think it should only take an hour or two to explain your problem and for the lawyer to tell you IF they think anything can be done.

The thing that gets me in your question is "verbal agreement". I am not a lawyer, so I don't know how much weight that's going to have.

The other thing that gets me is: why do you want to own a share in this company so badly. I get the concept of getting what's yours, but remember that oening a share in a business is to become part owner of it. Is this a company you want to be connected to? It seems kind of shifty, from what you;ve been telling us, and shifty management is NEVER good news when you're looking for a stock to buy.

Good luck!