Document background
The Employee Shareholder Agreement is a crucial document used when companies wish to offer employees ownership stakes as part of their compensation or retention strategy. This agreement, structured under Danish law, serves multiple purposes: it incentivizes key employees, aligns employee interests with company success, and establishes clear rules for share ownership and transfer. The document is particularly important in growth companies and professional services firms where employee ownership is common. It must comply with specific Danish legal requirements, including the Companies Act and Stock Option Act, while addressing practical aspects such as good/bad leaver provisions, share valuation methods, and voting rights. The agreement typically forms part of a broader employee incentive scheme and needs to be carefully integrated with the company's articles of association and existing shareholder arrangements.
