Case Study: NTAS Restructures by Empowering Employees Through EOT
- Case Studies
- 24th Jul 2024
We acted for the new employee owned trust company in the restructure of The National Teaching and Advisory Service For Looked After Children Limited, whereby the founder members of the company sold the majority of their shares in the company to an EOT (that we also set up) run for the benefit of the employees […]
By Max McGenity
MLP Law
We acted for the new employee owned trust company in the restructure of The National Teaching and Advisory Service For Looked After Children Limited, whereby the founder members of the company sold the majority of their shares in the company to an EOT (that we also set up) run for the benefit of the employees of the company and its wholly owned subsidiary.
This project involved setting up a trust company and establishing the EOT itself. In order to do this, we had to assist the clients in considering which powers and restrictions should be set at which level, and who would be responsible for different types of decision making. We did this by using our decision matrix, clearly laying out the options to the client and guiding them through the process.
As part of the transaction, the existing holding company assigned debts by transferring its directors loan accounts to the trust company by way of contribution in specie.
The sellers also agreed to receive the consideration involved on a deferred basis, with provisions to secure the companies’ payment obligations.
This matter followed on from the EOTs undertaken on Minehead Medical and gtd Healthcare last year and shows the development of mlplaw’s burgeoning specialism in helping businesses convert to the EOT model. We started 2024 working on two further EOT conversions.
Lead partner – Rachel Owen
Other team members – Stephen Attree, Max McGenity
Start Date – March 2023, End Date – June 2023
About the expert
Max McGenity
Solicitor – Corporate Team
Max is a Solicitor in the Corporate team and works with a variety of clients such as owner-run businesses, national corporations and private individuals. Having joined mlplaw as a Corporate Paralegal in November 2021, Max has built up experience in this area and hopes to continue developing his Business Services skillset. Max graduated from the University of Oxford in 2014 and has since been a manager at a national education charity and started his own business as a Personal Trainer and Yoga Teacher. He completed his LPC and LLM at BPP University Manchester, having gained legal work experience at both a mid-sized Liverpool practice and a large London firm. Having stepped away from the fitness industry to return to the law, Max’s love of exercise continues outside of work; he is a regular gym-goer and a fan of physical challenges. He also enjoys live music and comedy, and a good pub quiz.
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