We worked very closely with the business owner, other shareholders and our client’s accountant in order to put in place shareholder protection.
Each shareholder took out individual life policies for their shareholding, for the benefit of the other shareholders.
In the event of the death of a shareholder, the remaining shareholders are left with a sum in order to purchase the shares form the deceased’s beneficiary.
We also ensured that completion of all legal paperwork – the cross-option agreement – was efficient and suitable in conjunction with the client’s solicitor. This agreement means that if the remaining shareholders wish to purchase the shares from the beneficiary, the latter is required to sell, and vice versa. If neither party wish to buy or sell, the shares can remain with the beneficiary.
Supporting businesses in securing their future
As professional advisers, we are well aware that the world of business protection is filled with complicated terminology and a multitude of options, which at face value appear to be more hassle than it’s worth.
We prioritised presenting our client’s options in simple and concise language in order that our client felt that they were receiving advice and making an informed decision, rather than being instructed without any knowledge of the service they were receiving.
An example of this is the equalisation of premiums for all shareholders. We explained the tax implications that would arise if premiums were not equalised and ensured that this took place.