Home > Legal Updates > A corporate Swiss Army Knife: The Employee Stock Ownership Plan, Part 2: Shareholder transactions – navigating ERISA risks

A corporate Swiss Army Knife: The Employee Stock Ownership Plan, Part 2: Shareholder transactions – navigating ERISA risks

Part 2: Shareholder Transactions – Navigating ERISA Risks

An ESOP is a paradox – an ERISA-covered tax-qualified retirement plan, which benefits employees, designed to invest primarily in securities of the ESOP sponsor, which benefits the sponsor. Given this dual nature, there are many ERISA risks. Giving short shrift to these issues can lead to significant liability. This article provides a framework for navigating these perilous waters and mitigating risk. Read more…