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If
a share holder
in a business
dies, this can
create a significant
problem in particular
for those who
hold shares
in private limited
companies..
A number of
factors can
come into play,
for instance
do the beneficiaries
(who inherit
the shares):
4Want
an active role
in the business
4Are
they willing
to sell the
shares
4Will
they try to
put the shares
on the open
market?
These
are concerns
which your business
would not want
to be facing
or dealing with
at such a difficult
time.
Share
holder protection
insurance will
ensure that
the continuation
of the business.
It is an agreement
that if a death
or critical
illness was
to occur with
the shareholders,
how the shares
should be distributed
and the way
it should be
financed and
the tax implications
which could
be faced.
Essentially
share holder
protection will
ensure the
continuity of
business in
the event of
a death or critical
illness of a
shareholder.
Shareholder
Protection sets
out the procedures
and policies
to help ensure
that you
retain control,
and have the
necessary funds
to do so.
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