MattW

Nearly 5 years ago I was awarded some shares as part of my annual bonus from a previous employer. The shares are locked in for 5 years and held by Equiniti share trustees, once beyond the 5 year anniversary (May 2009) they can be sold without being subject to Tax and NI.

A year or so ago they were worth £600, but now down to about £430 (They are Swiss shares held in a financial services organisation). On Friday I receved a payslip from my old employee stating "Shares Sale" with a payment having been subjected to Tax and NI at BR.

The only thing I could possibly be is my shares held in trust, and sure enough the gross payment is very similar to the value of the shares as of Friday (within 1 or 2 pounds) so it appears they have been sold. Now before I call on Monday and play merry hell, what is the likely outcome to this?

Matt

Chip

I would have thought the shares awarded to you would have benn in your name but held in a trust fund until the 5 years is up like most company schemes. So no, as far as I am aware they are not entitled in any way to sell your shares. But you'll need to look at what it says in your original agreement when you received them.


Chip

Leslie

Sounds a bit fishy to me, like the financial services have been proved to be!

Les

NotoriousREV

It depends on the conditions around the share award. Were you subject to any clawback if you left before a certain time etc. Normally once they're given they're yours but you never know...

MattW

They are (were) Chip, I get an annual statement and a small divi. This is going to be difficult to sort now as I have no salary at the moment so the NI payment is lost, and as I'm higher rate I have a liability on the tax as well grrr.

Leslie, very true, however in defence of my previous employer they haven't been splattered across the news.

Chip

Matt,

If you get an annual divi and a statement then the shares would be in your name, therefore they should have no right to sell them.

Who are they held with?

Chip

boxst

That seems very strange. There are usually clauses that OPTIONS can expire or be sold, but if they are in your name presumably they are not options, but actual shares and you are getting dividends then they should not be sold?

Unless as part of the lock-in deal with that company there is a small clause that says they are sold staright after the period is up (that is unusual).

Steve

MattW

Chip - My employer was "Zurich", the shares are held with Equiniti Share Plan Trustees Limited. I do receive dividends, and also a pack every year for votes at shareholder meetings.

I've just read the rear of my last statement and it states...

What happens to my shares if i leave the company?
Whatever your reason for leaving the company, all your Plan Shares have to exit the Plan either by selling or transferring them. Your reason for leaving and the length of time for which you have held the shares will determins any Tax and NI that will have to be paid. You will be sent a letter outlining your options at the time.

I left 4 years ago!! I wonder if Zurich have just advised the trustee I have left. if that's the case I'm foobared but it would have been nice if they had soldthem when the market was up prior to this year