Closely held ESOP companies have a legal obligation to repurchase stock from departing and diversifying employees. In this National Center for Employee Ownership webcast, ESOP attorney Kevin Long explored a variety of alternative approaches that can be used on such repurchase obligation issues as the:
- Timing, form, and requirements for distributions.
- Account segregation at termination.
- Changing when distribution occurs.
- Diversification requirements.
- What valuation to use, and more.
You can learn more about related ESOP distribution issues in Kevin’s earlier article ESOP Distributions Policies: How Can You Modify or Amend Them?