Shareholder or Partnership Protection?
What is Shareholder or Partnership Protection?
Most business owners will want to leave the value in their business assets to their spouse, partner and/or children and Shareholder or Partnership Protection is cover that will allow you to do this.
Why have Shareholder & Partnership Protection
Most business owners will want to leave the value in their business assets to their spouse, partner and/or children.
When a Shareholder dies these are some of the possible outcomes:
• The business performing without one of its key individuals
• The new shareholder could decide to appoint a new director or remove an existing director.
• The shareholder's estate could sell the shares to "potentially" and unsuitable buyer.
• The existing shareholders may have to raise funds to acquire the outgoing shareholder's shares.
• Banks and Creditors may want to arrange new terms or even call in overdrafts due to the change in share ownership.
These are the potential issues from the deceased families point of view:
• Loss of earned income
• Loss of dividends
• Attracting a buyer for the shares.
• Achieving a fair value for the shares.
Your business and your family can be protected from these risks.
Shareholder protection can easily solve these problems by providing the following:
• An agreement setting out how the shares in the company should be valued and allowing the surviving shareholders the option to buy the shares from the outgoing shareholder's estate or giving the option of the outgoing shareholders estate to sell the shares.
• The funds to allow the shares to be purchased by the remaining shareholders.
• Additional funds to help with cash flow and loss of profits.
"Share Protection allows the remaining partners, shareholding directors or members to remain in control of the business following the death of a business owner."
Want to Know more about Shareholder or Partnership Protection?
Please feel free to book a free consultation with a specialist today.
If you are interested in booking a free consultation in order to discuss how a Shareholder or Partnership Protection Cover can protect your business please get in touch?
Other Business Protection Products available from The Business Protection Company
*Please note for these insurance products terms and conditions apply. This information is a summary only. You will receive a full policy document upon application. This policy will set out the terms, conditions and limitations of cover provided under the plan.