The Role of Trustees in an EOT

When a business transitions into an Employee Ownership Trust (EOT), trustees play a central role in ensuring that the structure operates fairly and in line with the law. Their responsibility goes far beyond administration — trustees are there to represent the interests of employees, safeguard the purpose of the trust, and ensure compliance with legislation.

What Is an EOT Trustee?

An EOT trustee is an appointed individual (or group) responsible for overseeing the trust that holds the shares on behalf of employees. Trustees act as custodians, ensuring the trust delivers long-term benefits to staff and continues to meet the requirements set out in the Finance Act 2014, which underpins the EOT model.

Core Responsibilities of Trustees

• Representing employees

  Trustees act on behalf of all eligible employees, ensuring their collective interests are protected.

  
  

• Ensuring compliance

  They make sure the trust complies with the EOT’s legal and tax obligations.

  
  

• Maintaining independence

  Trustees must act impartially, making decisions in the best interests of employees, rather than favouring former owners or senior management.

  
  

• Overseeing governance

  Trustees are responsible for upholding the governance framework, ensuring that the EOT is operated transparently and in line with its stated purpose.

  
  

• Monitoring company performance

  While not involved in day-to-day management, trustees monitor the company’s direction and performance to ensure it benefits employees as beneficiaries of the trust.

  
  

Types of Trustees

EOT boards are often made up of a mix of:

• Employee trustees – representing the voice of the workforce.

• Independent trustees – providing impartiality and external perspective.

• Company trustees – sometimes including former owners or directors for continuity.

This blend ensures balance, combining employee representation with professional oversight and business experience.

Why Trustees Matter

Trustees are central to building trust and confidence in the EOT structure. They give employees reassurance that their ownership stake is being protected and that decisions made are genuinely in their best interests. A well-functioning trustee board supports stability, accountability, and long-term success.

The role of trustees in an Employee Ownership Trust is fundamental to its success. By representing employees, ensuring compliance, and safeguarding the purpose of the trust, trustees help secure the legacy of the business while creating a structure where employees genuinely share in its future.

If you are considering an EOT and want guidance on trustee responsibilities and governance, contact us today.