Full ESOP Ownership Will Be Allowed for New York Design Professional Corporations
Corporate attorney Anne-Mette Andersen published an article in the New York Law Journal analyzing an amendment to the New York Business Corporation Law (BCL) that will allow employee stock ownership plans (ESOPs) to have 100 percent ownership of design professional service corporations (DPCs). Ms. Andersen explains that this amendment significantly departs from current ESOP ownership limitations of 25 percent, though only ESOPs that meet certain requirements will be permitted to reach 100 percent ownership. In this article, she reviews what these requirements are, what the benefits of the new law are and who can take advantage of them.
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