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The ESOP Repurchase Obligation

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The ESOP repurchase obligation requires ESOP companies to repurchase stock from departing and diversifying employees. Members of the National Center for Employee Ownership (NCEO) can access ESOP attorney Kevin Long’s webcast, Handling The Repurchase Obligation: Legal Issues. In this presentation he looks at the alternative approaches that can be used on repurchase obligation issues such as the:

  • Timing, form, and requirements for distributions.
  • Account segregation at termination.
  • Changing when distribution occurs.
  • Diversification requirements.
  • What valuation to use, and more.

You can learn more about related ESOP distribution issues in Kevin’s earlier article ESOP Distributions Policies: How Can You Modify or Amend Them?

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EDITOR’S NOTE: We did the best we could to make sure the information and advice in this article were current as of the date of posting to the web site. Because the laws and the government’s rules are changing all the time, you should check with us if you are unsure whether this material is still current. Of course, none of our articles are meant to serve as specific legal advice to you. If you would like that, please call us at (916) 357-5660.