Ernest Grant

The loss of a major shareholder or partner can cause serious problems, and not just within the business itself. For instance, Partnerships will be automatically dissolved if one partner dies – unless an agreement exists to the contrary.

Rather than inherit the shares, beneficiaries often prefer the monetary value of a shareholding. The remaining shareholders are almost certainly going to want control over the deceased’s shareholding, so why leave this to chance?

Share Protection helps the surviving shareholders or partners keep control of a business if a major shareholder or partner dies, or is diagnosed with a critical illness.

We recommend solutions that alleviate the issues arising from unforeseen events. Our specialist advisers understand the needs of individual businesses and recommend solutions that fit within their business model.

Potential issues include:

• Raising capital to acquire shares if the beneficiary decides to sell
• Ensuring the spouse or beneficiary receives a fair price for the shares
• Avoidance of the shares falling into the deceased estate
• The introduction of an unsuitable buyer of the shares
• Unfavourable prospects of the spouse keeping the shares
• Any impact on the confidence and productivity of employees
• Attraction from competitors and the poaching of key staff

After taking the time to understand your business, we’ll demonstrate the best available options available to you, any other shareholders and your company. Where appropriate, we’ll introduce other professionals, such as lawyers, to ensure the required legal agreements are in place to ensure your plans are realised – should the worst occur.

Life Assurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.