Employee Ownership Trusts (EOTs) are an increasingly popular way for business owners to secure the future of their company, protect its culture and reward the people who help it succeed. At Bennett Oakley Solicitors, we provide clear, practical legal advice to guide businesses through every stage of the employee ownership journey.

We have extensive experience advising on the establishment, governance and long-term operation of Employee Ownership Trusts. Notably, Bennett Oakley was the first employee-owned law firm in Sussex, and our own transition to employee ownership gives us first-hand insight into the commercial, cultural and strategic benefits this model can deliver.

Since changing our business structure, the firm has achieved significant milestones and won awards for our forward-thinking approach to business, reinforcing our belief that employee ownership can be a powerful tool for sustainable growth.

What is an Employee Ownership Trust?

An Employee Ownership Trust is a trust that acquires a controlling interest (more than 50%) in a company on behalf of its employees. The trust holds the shares for the long-term benefit of the workforce, allowing founders and shareholders to exit gradually while preserving the independence and values of the business.

EOTs are particularly attractive for business succession planning, offering tax advantages, continuity, and a legacy-driven alternative to trade sales or private equity.

What types of businesses do we advise?

We advise a wide range of owner-managed businesses, professional practices and SMEs across multiple sectors, including companies considering:

• Succession planning and exit strategies
• Retaining independence and company culture
• Long-term employee engagement and retention
• Tax-efficient ownership transitions

Establishing an Employee Ownership Trust

Setting up an EOT involves careful legal, tax and structural planning. We advise on:

• The suitability of employee ownership for your business
• Structuring the sale of shares to the trust
• Drafting trust deeds and constitutional documents
• Governance frameworks and trustee arrangements
• Ongoing compliance with EOT legislation

We work closely with accountants and tax advisers to ensure the structure is robust, compliant and aligned with your commercial objectives.

Ongoing advice for employee-owned businesses

Employee ownership is not a one-off transaction. We provide ongoing legal support to help businesses manage and maximise the benefits of their EOT structure, including:

• Governance and decision-making frameworks
• Shareholder and trustee obligations
• Employee engagement and communication structures
• Future growth, acquisitions or restructuring

Our advice is always practical, commercial and tailored to your business goals.

How we can help

At Bennett Oakley Solicitors, we combine technical expertise with lived experience of employee ownership. We understand both the legal complexities and the human impact of transitioning to an EOT, allowing us to deliver advice that is informed, pragmatic and commercially focused.

If you are considering an Employee Ownership Trust or would like to explore whether employee ownership is right for your business, contact our Corporate & Commercial team today for a confidential discussion. We are here to help you plan for a successful, sustainable future.