Posted by Nicky P. Anderson on May 12, 2022

Dear Nicky,

I'm the owner of my firm and I'm going to share some of the equity with a couple of key staff members. Does that impact anything with my NPAworldwide membership?

Equity in Evangeline

Dear Evangeline,

Sharing equity can be a great retention strategy and also help you prepare for a later ownership transition if you want to retire or sell the firm to one or more employees.

NPAworldwide members are required to report *any* change in your firm's ownership structure to the network within 30 days of such change. This can be a simple email to Sarah Freiburger, that lists the name of each owner plus the percentage of ownership that each person has.

NPAworldwide membership is not transferable. This is defined in the bylaws as an ownership change of MORE than 50%. To be clear, if there is more than a 50% change in the ownership of your firm, that is considered a transfer of ownership. This requires a new membership application and enrollment fee to be completed. Here is the specific wording about transfers of ownership from the bylaws:

Transfer of Ownership.

a. NPA membership is not transferable by any means including without limitation, a sale, gift, merger, consolidation, or assignment.

b. A cumulative change in ownership of more than fifty percent (50%) of ownership of a Member constitutes a transfer of ownership.

i. Changes in ownership require submission of a new membership application and enrollment fee.

c. If the ownership of a Member is held by an estate, trust, employee stock ownership plan or similar entity then, in addition to changes in ownership described above, the following shall constitute a transfer of ownership:

i. In the case of an estate, the appointment of a new personal representative or executor;

ii. In the case of a trust, employee stock ownership plan or similar entity, the appointment of a new trustee, plan administrator, or other person or entity with control of the Member.

Thanks for writing.


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