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Benefit accrued to employee of the subsidiary

Nehemia Mark's Profile

I am an employee of the subsidiary of a US company operating in EAST AFRICA. In our US parent company there was change of control through a much bigger corporation from Japan which now holds 86.5% of voting shares, though the management had never communicated these changes to employees. My questions is: what benefits accrue to the employee of subsidiary in EAST AFRICA as a result of change in control? And is it an issue that the management have never communicate these changes to employees,

Answers

Topic Expert
Keith Perry
Title: Consulting CFO and Business Operations A..
Company: Growth Accelerator
(Consulting CFO and Business Operations Advisor, Growth Accelerator) |

Anon,

Not knowing generic East African* law, I can't comment there.
However, unless your employment contract or stock plan (if any) have change of control language, there should be no impact what so ever. Typically, unless stated in a stock plan or other contract, the buyer inherits the contract, and there is no requirement that employees be informed.

*Note I doubt that all EA countries have the same rules, and further, I would venture to guess that the corporate structures would make it difficult to impose liabilities on the parent companies.

Cheers,

Keith

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