If a shareholder in your private limited company, or a member of your Partnership (LLP) were to die, could you afford to purchase their share of the business?
Share Protection allows the remaining partners, shareholding directors or members to remain in control of the business following the death of a business owner.
If a business owner dies with no share protection in place, the business may be passed to their family. This means that the surviving business owners could lose control of a proportion or, in some circumstances, all control of the business. The family may choose to become involved in the ongoing running of the business or could even sell their share to a competitor.
In the event of a business owner dying or being diagnosed with a terminal or specified critical illness, share protection can provide a lump sum to the remaining business owners. When a claim is paid the lump sum could be used to help purchase the deceased shareholding directors interest in the business.
Structuring the correct agreements and trusts is essential to ensuring the shareholder protection put in place provides the right amount to the right people. Futures Protected can take the pain and stress away and help you with this.