Document background
The Employee Shareholder Agreement is a crucial document for Irish companies implementing employee share ownership schemes as part of their retention and incentivization strategy. It serves as the primary legal framework defining how employees can acquire, hold, and eventually sell or transfer company shares. This agreement is particularly important in the Irish context, where it must comply with the Companies Act 2014, employment legislation, and tax regulations. The document typically includes detailed provisions on share classes, voting rights, dividend entitlements, and restrictions on share transfers. It also addresses scenarios such as employment termination, company sale, and share value determination. The agreement is commonly used by growing companies, particularly in technology and professional services sectors, where employee ownership is seen as a key tool for attracting and retaining talent while ensuring alignment with company objectives.
