Equity Ownership, Fiduciary Duties and Exit Procedures: Some Things To Consider When Dealing With the Departing Employee

Even under the best circumstances, dealing with the departure of a key employee is never easy. If the departure was unexpected or is otherwise acrimonious, the situation can be even more difficult. This paper discusses a few elements to be considered when a valued employee is unexpectedly leaving a business and focuses specifically on equity ownership issues, possible fiduciary duty concerns, and procedures to follow in connection with the employee’s departure.