For many business owners running a company is a time consuming and complex affair and very often little attention is paid to what could happen if a shareholder dies or becomes seriously ill.
In the interests of financial security, business stability, and continuity - particularly for private limited companies where there may only be a small number of principal shareholders - it is essential to provide a safety net following the loss of a shareholder:
The correct Insurance Policy allows for sufficient funds to be available in the event of the death or serious illness of a shareholder. This ensures that the company can continue to operate unhindered while the ongoing shareholder or their family receive fair compensation. It provides documentation to enable the surviving shareholders to receive the funds free of tax.
Benefits for shareholders
In the event of a shareholder’s death or serious illness, one of the most important things to your business is to ensure continuity. Shareholder Protection sets out the procedures and policies to help ensure that you retain control, and have the necessary funds to do so: