Legal Question in Business Law in California

Unless there are facts we weren't given, the answer is no. When someone makes a gift to someone else, the donor loses ownership and control and the donee becomes the owner, at the moment of delivery and acceptance.

Apparent intention to make a gift is the key to passage of title, so if the donor wants the gift to be conditional, the "strings attached" must be expressed clearly at or before the gift is delivered.

For this reason, companies should hire experienced attorneys to design employee stock plans so the vesting of stock occurs under mutually-agreed conditions and the issuer's right to cancel or repurchase the stock, if any, or expiration of options, is clearly delineated.

Whatever your bylaws and company policies are, in conjunction with the contracts and documents regarding the issuance, determine the answer. If you were negligent and sloppy about documenting all those things, then the answer is going to come from negotiation and resolution among the parties, or from a judge and jury after a trial. If you are in SoCal, and if you want legal help in this, feel free to contact me.

Ideally, there should be a stock restriction agreement in place that will establish conditions for the vesting of the stock, usually a period or periods of time before the stock or certain percentages of the stock become vested, assuming continued employment during the period(s). Sometimes, the vesting is conditioned upon the completion of certain projects or tasks. If no similar agreement exists, all of the above comments will apply.

I do not know all the facts of your case, and I do not legally represent you. Although I strive to make sure the information I provide is generally accurate and useful, you should promptly consult a lawyer who can learn the details of your case more completely, to ensure that the information I provide, and your interpretation of it, is appropriate to your particular situation.

If you would like to discuss this matter further in a more private forum, please feel free to contact me directly at the email address provided by LawGuru or through my firm�s website located at BealBusinessLaw.com.