N.A. Selling Private Shares in a company

[sferguson524]

Hey all,

I was given 10K shares in a former company as a bonus one year, and they're fully vested now. Is there any way to sell these shares? My stock grants say I can sell them back to the company after 5 years, and it's been 7. Thanks in advance.

 

[Ravioli]

It's all in the details, but, if you were granted shares of a private company you will probably need to sell them back to the company at their listed strike price. You can't just e-trade them or sell them to your cousin on the side.

The plan documents were fairly detailed on the procedure and pricing the few times I was in such a position.

 

[RyanB]

Depends on the company. Some corporations have special buy back programs that will allow you to relinquish your stock. You'll have to check with your company to see if there are any clauses that would prevent you from selling to other investors.

 

[Sac Arrow]

Read the shareholder's agreement in the corporate bylaws. It's probably not public information but that is where the details are spelled out.

 

[denverpilot]

Read the shareholder's agreement in the corporate bylaws. It's probably not public information but that is where the details are spelled out.

Or just contact the stock administrator. Usually it's someone in HR. They'll know all the details.

 

[Clark1961]

Or just contact the stock administrator. Usually it's someone in HR. They'll know all the details.

And trust what they tell you only after they send supporting info and you review it.

 

[denverpilot]

And trust what they tell you only after they send supporting info and you review it.

True. HR staff aren't well known for being on employee's side. That's why it's not the Personnel Department anymore. You're just a resource.

 

[Ravioli]

True. HR staff aren't well known for being on employee's side. That's why it's not the Personnel Department anymore. You're just a resource.

C'mon Nate. Don't make me consult my HR Generalist on this, but I thought the whole purpose of the MORONIC name change was to to help with the feelings of the Humans who felt that Personnel Department did two things: Cut checks, and keep you from getting more checks.

People in Personnel were viewed like the FAA "They're just there to violate you" (see other thread).

Now that they are HR, they are your friends. They help you get the training you are required to have (and sometimes need) and they help you with any issues with your co-workers (so your managers who don't know the secret language to avoid lawsuits don't have to) and they explain your benefits (poorly) and they plan the friggin' company picnic, jeans day, and the profoundly worthless United Way campaign.

Oh yeah, they still cut checks and keep you from getting more checks. They're trying to farm that off to some nasty department so they can be friendly all the time. Maybe Audit or Tax compliance can take it. No one likes them anyway.

Note: I think the real answers to this thread have been given already. Please unread this post.

 

[denverpilot]

Now that they are HR, they are your friends. They help you get the training you are required to have (and sometimes need) and they help you with any issues with your co-workers (so your managers who don't know the secret language to avoid lawsuits don't have to) and they explain your benefits (poorly) and they plan the friggin' company picnic, jeans day, and the profoundly worthless United Way campaign.

ROFL! That was assesome!

You forgot the "value-add" when they handle interviews with questions like, "If you were an animal, what kind of animal would you be?"

Uhhh, I am an animal. Homo Sapiens. I'm pretty sure you wouldn't hire me if I was a different one. They don't know how to... X.

Oh yeah, they still cut checks and keep you from getting more checks. They're trying to farm that off to some nasty department so they can be friendly all the time. Maybe Audit or Tax compliance can take it. No one likes them anyway.

That's always been Payroll and/or Accounting wherever I've been. Never seen HR allowed to handle money!

Note: I think the real answers to this thread have been given already. Please unread this post.

LOL!

 

[Lindberg]

It's all in the details, but, if you were granted shares of a private company you will probably need to sell them back to the company at their listed strike price. You can't just e-trade them or sell them to your cousin on the side.

Maybe, maybe not. There's no inherent reason why you necessarily can't sell shares in a private company to your cousin on the side. You just need to make sure you comply with any share-transfer restrictions and your state securities laws. Read any legends on your stock certificates, any shareholder's agreement or plan documents you were given, and if we're talking about a significant amount of money, consult an attorney and accountant.

 

[Hank S]

That's always been Payroll and/or Accounting wherever I've been. Never seen HR allowed to handle money!

At a recent job, Accounting/Payroll was all off site. They would do up the checks and send them to our one-woman HR department for distribution. Even thiugh mine was just a direct deposit receipt, it was always the HR lady who passed them out; sometimes she'd walk them around, sometimes I'd go to her office, some people received actual checks. (Yep. This was in 2014-2015, too . . . I love direct deposit, no more having to go to the bank all the durn time!).

Other than that, I've not found much value in most of the HR organizations that I've dealt with in my working career (I hate to count, but 1989 is getting further and further away).

For this transaction, read everything you can get from the company, and talk to a financial advisor who you trust. Oh, the HR folks can usually show you where to look to get the information in your own.