Shareholder Protection
Ensure your business remains uninterrupted in the event of a colleague’s passing.
What is Shareholder Protection?
If a business owner dies or suffers a terminal illness, their share of the business usually passes to their beneficiaries.
To regain control of that share, surviving business owners may need to buy that individual’s part of the business. Many businesses don’t have the money to do this, and it can be costly to borrow.
With Shareholder Protection, you will be paid a lump-sum in order to cover the cost of purchasing those shares.
What could happen without Shareholder Protection?
If a business owner passes away without share protection, their ownership stake may be inherited by their family. This situation could result in the remaining business owners losing control over part or even all of the business.
The family members might choose to participate in the business operations or decide to sell their share to a competing firm.
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