Employee Shareholder vs Employee with shares

[Employee77]

I have a Shareholder Agreement, where i am referred to as an Employee Shareholder. This SA refers to things which you would expect to find in an employment contract, such as my expected duties, hours of commitment, i can be sacked for no reason. It also says this document supercedes all previous agreements.

However, it makes one reference to my original contract of employment.

I'm confused whether this document is an Employee Shareholder Employment Contract (ESEC). This is significant because none of the 6 statutory conditions were met. The Gov uk website says if the 6 conditions are not met the document has no legal effect, which will really help me.

How does one tell the difference? Would i argue it includes enough employment terms so it is an ESEC?

[ULA]

If you are deemed to be an employee shareholder then as you have rightly pointed out the following 6 conditions must be met:

1. You and the company must both agree that you are to be an employee shareholder.
2. The employer must give you fully paid up shares in the employer's company or employer's parent company, and they must be worth at least £2,000.
3. You must not pay for the shares in any way.
4. The employer must give you a written statement of the particulars of the status of employee shareholder.
5. You must get advice from a relevant independent adviser on the terms and effect of the written statement. The company is required to pay for that advice whether you then accept the job or not.
6. You cannot accept or agree to an employee shareholder job until 7 days have passed following receipt of the advice. The 7 days begin on the day after the advice has been received.

If you or the company have not undertaken or keep to these 6 points then you cannot be considered an employee shareholder.

Hope that helps but if you have any further questions please come back and ask.