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Ask Maverick Your Own Question
Maverick, Attorney
Category: Legal
Satisfied Customers: 6390
Experience:  20 years experience as a civil trial and appellate lawyer
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I have regarding option in a Managers Buy Out. Our

Customer Question

I have regarding option in a Managers Buy Out. Our corporation has announced that they will be divesting the location i work at, and current head management has put together an offer for a MBO. My husband (who is one level below top management, and still has a management position) and i would like the opportunity to part of this MBO, or atleast explore the option. Can management exclude anyone they want from the MBO?
JA: Because employment law varies from place to place, can you tell me what state this is in?
Customer: The location being sold by the corporation is in Hawaii, however our corporation is a global company.
JA: Has anything been filed or reported?
Customer: i found out that they have one 'seat' left in the MBO. I expressed interest and have been given no information. Additionally, no one was supposed to be aware that this was happening. NDA were signed, but there was a leak...
JA: Anything else you want the lawyer to know before I connect you?
Customer: no
Submitted: 9 months ago.
Category: Legal
Expert:  Maverick replied 9 months ago.

Welcome to Just Answer! My name is***** give me a few minutes to review, analyze and/or research your inquiry and I will be back.

Expert:  Maverick replied 9 months ago.

Managers can not exclude anyone from the MBO if the reason for the exclusion in to discriminate against an employee based on his/her age, race, sex, national origin, religion, or disability. Given that NDAs were signed, it is possible that the NDAs could serve as a cover for such discrimination.

So, my opinion is that while excluding certain employees may legally be done based on rank, experience level, educational background, etc., it may have been improper to do it secretly as that secrecy could serve as a cover up for illegal discrimination.

You may want to consult a local employment law attorney on this to see if, first of all, the NDAs can be rendered illegal for the reasons stated above through what is known as a declaratory judgment action. Thereafter, once all the information is open as to who was offered the MBO and who was not, then a discrimination suit may follow.

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Customer: replied 9 months ago.
Would discrimination only follow race, gender, sex, etc. Or would position qualify as discrimination as well? As an example, the HRBP is part of the MBO (who isnt a manger), yet my husband who is a site operations manager was not included.
Expert:  Maverick replied 9 months ago.

No, the classes I listed for you are specifically "protected classes" under the law. Discrimination based on some other factor [other than the 6 I listed] would typically be permissible.

Expert:  Maverick replied 4 months ago.

The advantages of using this method is that it saves time and money. Typically, using one deed takes less time and saves money in notary, recording, and preparation fees. The down sides are that a material mistake in the deed could affect the title of all of the parcels it conveys. Also, the parcels must be located in the same filing/deed recording jurisdiction.

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