Just for a moment, consider what would happen to a business if a shareholder, or a partner / director who is also a shareholder in the business dies? not only does the business lose their experience and expertise, but what happens to their shares in the business? Can the business or the remaining shareholders afford to buy their shares? Their shares may pass to someone who has no knowledge or interest in the business, or that person might gain significant control over the direction of the company and make decisions which might not be in the best interests of the remaining directors or those still working for the company.
This is an area that has become very topical, and I have actually come across a number of live examples where the absence of adequate planning has actually resulted in the business incurring huge legal bills, and even failure, not to mention the stress and heartache that it caused the families and loved ones of those affected and the families of the remaining shareholders.
Why would a company and / or its Directors and shareholders want to risk this happening to them when realistically it can cost very little in the scheme of things to potentially prevent this happening. For example the use of some very simple insurance policies, trusts and cross option agreements as one example could potentially eradicate this.
If you, or any of your associates and contacts believe that this is something they should review then please do pass on our details, email me on email@example.com or give me a call on 01482 658989 to discuss in more depth.