Intending to incorporate a new Company. In case a Director is given a stake, can it be conditional to his stay in the Company.
Situation : Wish to take on Board one of the key employees as a Director with say 5% stake in the Company. Need to have a lock-in period for the stake. How to deal with the situation, so that the employee sticks to the Company say for 2-3 years.
Further, in case the Employee-Director need to be relinquished from Service due to reasons attributable to moral turpitude, resulting in termination, what happens to the Stake in the Company.
Either side, if termination occurs, can the Stake be withdrawn.
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