Ex-employer share conversion and now no payout

[simontrent]

Struggled how to summarise the problem in the title.

I was awarded shares in my ex-employer back in 2009. I asked for them to be sold in May 2011, which was done. My contract states that the money would be paid within 90 days, although it follows up that this is dependant on board approval. They wrote that the payment would be made in 2012.

I resigned from the company in February 2012 and am still waiting for the payout. I contacted the CFO and CEO this week who inform me that there is no hard-stop and I simply need to wait.

Does anyone have any advice on how I could proceed?

Unfortunately, it's not millions, but too significant a value to walk away from.

Thanks

[sumo69]

Sounds like they are in breach of contract - if so, you have the right to go legal without further delay so I would write to the Board making a final demand for payment within 7 days and if not you will commence litigation for which you will be claiming your costs and interest from them.

Depending on the amount you can use the moneyclaim online service for a notional fee.

David

[simontrent]

I made noises about further action but they are claiming I'm now an unsecured creditor and have no employee rights.

[J4C]

Who bought the shares ?

And has the firm now gone bust ?

[simontrent]

The shares aren't publicly traded so really just an internal award. The company is still trading, and by all accounts expanding.

[birdcage]

Who were your shares sold to?

[simontrent]

May "cashed in" is a better expression. I "sold" the shares back to the company.

[sumo69]

Its really down to what your contract said regarding payment - may be worth a lawyer casting their eye over the papers??

[J4C]

I'm still not clear exactly what transaction has occurred, but it sounds most like deferred bonus compensation. No hard and fast rules in that case. Has anybody paid tax and NI at any point ?

You are going to have to read all the fine print, and then if you still think it's owing after having left the firm you'll probably need to go legal to get it paid.

Edited by J4C on Friday 31st August 00:17