With anybody owning five percent or more of your business being classed as a 'significant shareholder', you could soon have new business partners pulling the strings in your business.
We can prevent this from happening by protecting you and your partners, ensuring if the worst does happen, your business stays in the right hands. This complements a Cross Option Agreement within the firm.
- In the event of a death of a shareholder, a lump sum is paid to the remaining shareholders
- The money can be used to buy the deceased’s shares in the company to allow the company to continue to run as normal
- A legal agreement will need to be drawn up to set out guidelines in the event of death