What happens when a company terminates someone who is both an
employee and a shareholder?
In Kirke v Spartan Controls Ltd, 2025
ABCA 40 ("Spartan Controls"),
the Alberta Court of Appeal reiterated the distinction between a
person's employment rights and their shareholder rights, and
held that the payments owed upon termination can be reduced by the
terms of a Shareholder Agreement – as long as their rights as
a shareholder are not determined by their status as an
employee.
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What are employee stock options?
Stock options are an alternate form of compensation that
companies can offer their employees.
Employee stock options provide employees with the right to
acquire shares of their employer corporation at a designated price
after a certain period of time. They are an alternative
compensation method (over and above the wages and benefits found in
a typical compensation package) that are used by businesses to
encourage growth and to attract, retain and
