equity, stock-options, indiaI work in a company in Bangalore, India. I have currently quit my job, and I’m looking to exercise my substantial vested options and buy them. But there are some issues, and these stock issues will be be sorted out on a certain date in a couple of months and only then can the options be given to employees, but I cant be here till then since I’m in my notice period.
Hence(being an early member and having contributed quite a bit to the org) I’ve been told that my stocks will have to be bought by another employee who will be here till said date, post which I can buy them back at the same price from that employee. Is this legal? Are there any implications of doing this?
It’s possibly legal, but extremely fishy.
Go ask a lawyer if the company officially told you that this nonsense is the only thing they can do. The company can change the contract terms to make such an arrangement work – basically drop or extend the exercise period of your stock options and voilà.
If an HR person who should know better told you this is the only thing they can do, escalate the request to someone who will know better, or at least prompt them to double-check with an attorney themselves.
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