Protection for business owners and their families
You are a shareholder or partner in your business, perhaps along with others.
Maintaining control and stability of a business in the event of death and or illness of a director/shareholder is vital.
Here are some of the questions you need to ask yourself – before a crisis presents itself.
- In the event of death, do the remaining business partners have sufficient monies to purchase the shares from the deceased’s estate?
- If spouses are shareholders (whether they work in the business at all or not), do you really want to work with your ex-business partner’s spouse?
- Do the remaining directors/partners have the correct, enforceable agreements to enable them to purchase the business interests?
If not, the beneficiaries could involve themselves in the business – or worse: sell the business interests to a competitor.
- What valuation model has been established to make sure the purchase and sale are at fair prices?
- Would the beneficiary be able to enforce the remaining partners to purchase the business interests?
- What would happen if a business partner was suffering from a long term illness? How long would the business pay a salary or sick pay for?
- If the business partner was not able to return to work, could the remaining business partners enforce a sale and take control, and vice versa – could the business partner who is ill also enforce a sale and receive a fair price?
There’s a lot to consider.
We can help you work through the issues for your business, and your circumstances.
To find out more about:
- Shareholder Protection and Agreements
- Cross Option Agreements for shareholders
Call us on 0141 420 2033 to find out how we can help, with no obligation. Or complete the call back form and we’ll call you.