Achieving a Successful Director Exit Through Settlement Agreement Negotiation

Background

A senior director at a growing recruitment business sought our assistance to exit on amicable and favourable terms. Having been with the company for a significant period and holding shares in the business, the complexity of their exit was elevated.

The transaction required us to navigate a range of issues, including the negotiation of a fair settlement agreement to resolve any potential employment-related claims, such as the termination of the client’s role and the transfer of shares. Furthermore, the exit required addressing shareholder disputes and managing post-employment restrictions, ensuring that all aspects of the transition were handled smoothly.

Our Approach

We worked closely with our client to fully understand their goals and ensure every aspect of the exit was carefully considered. Our strategy included the following key steps:

Negotiating the Settlement Agreement

We provided expert guidance in negotiating a comprehensive settlement agreement, addressing any employment-related claims, including potential issues like unfair dismissal, breach of contract, and statutory entitlements. This ensured our client’s legal rights were safeguarded throughout the process.

Share Transfer Negotiation

A crucial element of our client’s exit involved negotiating the sale of their shares to other company directors. We managed this process seamlessly, overseeing the valuation of the shares and structuring the payment terms to ensure fairness and clarity for all parties involved.

Director’s Loan Account Settlement

In addition to facilitating the share transfer, we handled the settlement of our client’s Director’s Loan Account. We ensured timely repayment in line with the agreed terms, providing our client with the financial closure they needed.

Confidentiality and Post-Employment Terms

We provided in-depth advice on the confidentiality clauses and post-employment obligations outlined in the agreement. By doing so, we ensured that our client’s future business ventures and career were protected, and any restrictive covenants were clearly understood and appropriately managed.

Outcome

Through our careful negotiation and strategic advice, we successfully facilitated a smooth exit for our client. The settlement agreement resolved all potential claims, and both the share transfer and loan settlement were executed efficiently. Our client was able to move forward without lingering legal or financial concerns, and their exit from the company was amicably completed, allowing them to focus on their next professional chapter.

Why Choose Us?

Our team specialises in providing expert advice and tailored advice for clients navigating complex business exits. Whether you are dealing with employment claims, shareholder disputes, or post-employment restrictions, we offer a comprehensive service to ensure a smooth and favourable exit.

Disclaimer: The case studies on this website are provided for illustrative purposes only and do not constitute legal advice. All identifying details have been removed or altered to protect client confidentiality. Outcomes described are specific to the circumstances of each case and may not be indicative of future results. You should seek independent legal advice before taking any action based on the information provided.

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