Selling or Buying a Small Business/future of start-up company
Hello, William Bruno
I recently got fired from a start-up company specializing in software development, after working for them for a year.
From my perspective everything seemed fine, until the following happened:
1. The CEO hired a president who seemed to be restructuring the company. Shortly after the new president started his job at the company there was not much left to do ( I was told that our product was being audited so there was a freeze in all development work ). I'd like to know ( or at least get an opinion on ) why a CEO would hire a president, who would then fire several employees.
2. Before I got laid off I was given many shares from the company. Then the president told me that he was expecting the company to be bought by a bigger one and then I could sell the shares back to the company so I can receive a bonus. Why would a company offer more shares to a just laid-off-employee and then call them back to buy the shares back?
In regards to point 2 my suspicion is that they offered me the shares hoping that I do not get too disappointed, when in reality these shares will never increase in value ( like a false hope so I don't get too upset), but I would like to have a better understanding of these business decisions ( point 1 and 2 )
Hello, Jake, and thank you for contacting AllExperts.
Unfortunately, these questions would have to be answered by those who made these decisions. They are not in my area of expertise, and I am not certain they would be considered legal matters. If you do feel you have been wronged, there are agencies you can file a complaint with. You did not state your location but all States have labor agencies, and you could also contact an attorney.
Best to you.