Shareholder protection is essentially ownership protection. It allows company owners to buy shares back from any shareholder who is diagnosed with a critical illness, becomes terminally ill or dies unexpectedly. The policy helps surviving owners stay in control and minimises any disruption to the company.
Two is the magic number
Shareholder Protection is suitable for Limited Companies with two or more shareholders.
Why you need Shareholder Protection
- Provides a plan for the company if a shareholder dies or falls ill.
- Ensures control is retained and offers security to all parties.
- Provides financial security to the shareholder and their family.
- Protects the business by keeping control of the ownership of shares.
- Removes ambiguity and disagreement over the value of shares.
- Provides a fair mechanism for the valuation of an owner’s shares.
- Supports business continuity and facilitates succession planning.
