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Shareholder Protection

An alarming number of business owners, partners and shareholders have not made provisions in the event that one of them dies. Such provisions would protect both the party that has passed away, as well as the remaining owners, shareholder or partners, whilst ensuring business continuity.

On death part ownership could be passed to the deceased party’s family or estate. This could result in surviving business owners losing control of either part or all of the business. Family members could then choose to either get involved on a daily basis, join the board or sell the inherited share of the business to the highest bidder, even if that may be a competitor. It could even result in the business shutting its doors for good, with loss of revenue, staff disruption and the end of a business the business owners have worked hard to create.

In this event could the remaining parties afford to purchase the deceased owner / shareholder / partner’s shares in the business? If not there could be significant implications for both business owners and staff. A Share Protection policy could protect the ownership and sustainability of the business in this situation.

A Share Protection Policy would pay out a lump sum in the event of a business owner dying or being diagnosed with a defined critical illness. This would be paid to the remaining business owners and in line with a Partnership agreement signed before death, be utilised to purchase the deceased owner / partner / shareholders shares in the business.

For further information on how you could protect your business with a Shareholder Protection Policy please contact us on 0800 0121033 or 01903 821018 or by email

 
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