Most of us find it hard to talk about death, never mind plan for it. As a business owner, the death of a shareholder or a business partner can have devastating consequences for you, your family and your staff.
Have you considered what would happen to a business partners shares if something unexpected were to happen?
The surviving owners will probably want to buy the deceased’s share and keep control of the business. However, the harsh reality is that many won’t have access to the required funds to cover any buy out.
Should the surviving partners be unable to source the required funds, the following could happen;
Consider the position your spouse and dependants would be left in, should the worst happen to you. Assuming they have no desire to be involved in the day to day running of the company, ensuring they receive a fair price for your shares would go a long way to safeguarding their future.
A clean break is
often the desired route, but this is only possible if the correct solution has been
put in place
Shareholder protection provides peace of mind for the remaining directors should one of them pass away and financial compensation for the deceased’s family, in the form of a lump sum pay-out in exchange for their shares.
In addition, should a shareholder become seriously ill, critical illness cover ensures a lump sum is paid out to the individual who is suffering.
You build your business, let us protect it.
GWM Corporate Solutions is a trading name of GWM Middle East Insurance Brokerage LLC, Unit 301, Opal Tower, Business Bay, Dubai, United Arab Emirates, PO Box 35482Registered by The Insurance Authority Licence 251.