The ESOP Association and Employee Ownership Canada Forge Historic North American Collaboration Agreement

Mutual membership benefits will be extended across borders

New Canadian Employee Ownership Trusts to be featured in full program track at Employee Owned 2024 in Las Vegas this November

WASHINGTON, DC – The ESOP Association (TEA), the U.S.-based trade association representing U.S. employee-owned companies and the professionals who provide services to them, and Employee Ownership Canada (EOC), which represents Canadian employee-owned businesses and professionals, have entered a long-term collaboration agreement. The exclusive strategic partnership will extend mutual membership benefits between the two organizations and as a result, will provide a North American platform to advance employee ownership and employee-owned companies.

“This is a truly exciting agreement, and the first of its kind anywhere,” said Jim Bonham, President and CEO of The ESOP Association. “Canada is boldly stepping forward to create Employee Ownership Trusts and incentivize business owners to transition their businesses to their employees as a succession plan. We are thrilled to welcome our Canadian counterparts to join in our programming, and for our members to join in theirs. As more business owners become familiar with the new Canadian law, we hope to help EOC quickly scale its programming as it provides important services to its own members, as well as American employee owners and professionals who do business in Canada.”

In June, Employee Ownership Trusts (EOT) were established in Canadian law with the passage of bills C59 and C69. Canadian business owners will now qualify for up to CAD $10 million in tax-free capital gains if they sell their companies to an EOT. The incentive expires on December 31, 2026. This three-year window creates an urgency to educate Canadian business owners and professional advisors about the new opportunity and tax savings.

“This kind of collaboration is the very spirit of employee ownership in practice,” said Tiara Letourneau, Chair of Employee Ownership Canada. “Canada’s new legislation needs to be promoted and there is huge interest in the Canadian business community, but very little knowledge. Having mutual support for our employee ownership communities will bring the TEA’s deep experience to Canada and allow American companies and professionals doing business in Canada to learn about our innovations. It’s a win-win for current and future Canadian and American employee owners.”

Among other arrangements, the following benefits and programming have been agreed:

• The ESOP Association will add an entire track of educational content regarding the new Canadian Employee Ownership Trust to the programming of Employee Owned 2024 in Las Vegas, which is the largest gathering of employee owners and professionals in the world. Canadians may register to participate in the entire conference in-person, or may join the educational sessions virtually, at TEA member pricing.
• The membership of each organization may attend the events of the other at their mutual membership pricing, including Employee Owned 2024 and future national and Chapter events in the U.S., and the annual Employee Ownership Canada National Conference.
• TEA will assist in raising awareness of the new EOT in Canada and educational opportunities for business owners and professionals.
• Members of each respective association will have membership access and pricing to educational materials, publications and content of mutual interest.
• TEA will provide organizational development support to assist EOC in scaling its programming and outreach to maximize the uptake of the new EOT in Canada over the next three years.

About Employee Ownership Canada

Employee Ownership Canada (EOC) is a national non-profit association dedicated to advancing employee ownership models across the country, particularly through Employee Ownership Trusts (EOTs) and Employee Share Purchase Plans. The EOC provides essential resources education, and advocacy to facilitate the transition of Canadian businesses to employee ownership.