Protect your business with shareholder protection
Why shareholder protection is important to have in place
If one of your shareholders dies or is suffering from a severe illness, their shares will usually pass to their beneficiaries. To regain full control of the business, the surviving shareholders will need to buy the shares back. But they might not have the available capital to do this.
Risks of not having this protection in place:
- Shares may go to the deceased’s family. But, they could have no interest in the business and may prefer a cash lump sum.
- The company or other shareholders may not have the resources to retain control by buying the deceased’s shares.
- The shares may be taken over by someone who does not share the company’s objectives. They may even be a competitor.
How does shareholder protection work?
Advantages of shareholder protection
- Shareholders enjoy the peace of mind that if an investor passed away, surviving shareholders will not need to worry about finding the money to purchase assets. Instead, they will receive pay-out funds that allow them to buy up the deceased’s shares. Therefore, creating a safe and stable business plan.
- Support for family members is very important. Cash payments can help to relieve the stress that families face when losing a key breadwinner. Shareholders will rest easy knowing their families would receive a pay out in case of their death, as policies guarantee a fair buy-out price.
- This protection insurance can also be used to cover serious illnesses. Given that the right agreements and policies have been put in place, a sick shareholder is able to sell shares to continuing shareholders. Should a shareholder fall ill, the knowledge that they have shareholder protection insurance will be a big weight off their mind.
What we can offer
Shareholder Protection is a vital tool to provide you with a lump sum in the event of death or critical illness. This would enable your company to buy the shares of the relevant shareholder.
If your business already has a scheme in place, we can offer a no obligation free review of your existing arrangement.
We have access to some of the most competitive rates in the market place. As well as working closely with all of the main insurance providers. Certainly ensuring we get the best, most cost-effective deals for you. Contact us today to find out more about the shareholder protection schemes we offer...
Shareholder Protection FAQ's
Contact us if you have more questions!
Is your business protected?
Find out more about the business protection schemes you can put in place. Click on the button to contact us for a free consultation today...