Shareholder and Partnership Protection

< Back to Business Protection Overview

If one of your shareholders dies or is suffering from a severe illness, their shares will usually pass to their beneficiaries. To regain full control of the business, the surviving shareholders will need to buy the shares back. But they might not have the available capital to do this.

With our Shareholder and Partnership Protection, we can help you keep control of your business.

---

What is a shareholder/partnership?

Shareholder and Partner Protection provides a business with a cash lump sum if a business owner dies or suffers a severe illness. This lump sum provides the capital to enable the surviving business owners to purchase the deceased's or incapacitated individual's share of the business - allowing them to keep control of their business.

Who is Shareholder and Partner Protection designed for?

Where all the owners of business are members of the same family then there is usually no problem with succession when one of the owners dies or becomes incapacitated. However, in businesses run by unconnected parties (or families where succession is not assured) the death or incapcity of an owner is likely to cause serious disruption to the business and problems for both the business and family of the owner concerned. This can apply equally to partnerships, LLP's or limited companies.

Why is Shareholder and Partner Protection needed?

If a business owner dies or suffers a severe illness, their share of the business will usually pass to their beneficiaries. To regain full control of the business, the surviving business owners will need to buy the deceased's or incapacitated individual's share of the business. Many businesses will not have the available capital to do this and so Shareholder and Partner protection provides the framework where the right money is left in the right hands, at the right time.

---