Shareholder protection

If a major shareholder of a business dies prematurely, the surviving shareholders will usually need to ensure that there is a smooth transition of control of the company. They may wish to ensure that they will be able to acquire the deceased's shareholding, and that they will have the resources to do so. Similarly, each shareholder will want to be sure that in the event of his (or her) death, the estate will be able to dispose of his shareholding at a fair price, without undue delay or adverse tax consequences.

Similar issues exist for Partnerships.

Provision can be made by taking out life assurance policies. It is important that these are set up in the right way, with appropriate trust deeds and cross option agreements. We can recommend cost-effective solutions and provide advice as to how best to set them up.

Katherine Finch for further information.

Key Person Cover

Some businesses will employ key individuals whose contribution is vital to their ongoing success and profitability. The death or long term illness of such key people could cause serious financial strain for the business. It is possible to protect against such events by taking out Key Person cover. We can source cost-effective solutions, provide the necessary paperwork, and advise on tax implications.

Please contact Katherine Finch for further information.

Use the following link for useful information from the Financial Services Authority:

www.moneymadeclear.fsa.gov.uk