Shareholder Protection

How would a shareholder becoming critically ill or die impact your business? Would their shares in the company end up in the right hands?

If the shareholder was to die then the shares would automatically go the shareholder’s spouse or closest living relative. You could find yourself working with whoever inherits them. It may also mean that you would have to pay them a percentage of company profit each year whilst the shareholder probably adds little or nothing to the running of the profitability. What if you were not the majority shareholder? This could mean that the new shareholder could be calling the shots! Sounds Stressful, but this is just a few examples of some of the devastating scenarios that could happen.

By having shareholder protection means you will receive money which would enable you to either purchase the shares from the critically ill shareholder or estate if the shareholder was to die. Leaving you with the control of the business.


If you would like to find out more information about any of the Shareholder Protection services please contact us.