Shareholder protection
Shareholder protection is, unfortunately, something that tends to be ignored amidst all the day to day concerns of running a successful business. However, it is vitally important, particularly for private limited companies where there may only be a small number of principal shareholders, to consider what would happen if one of their shareholders were to become critically ill or even die.
Ramifications of such an event can include
- Shares being passed on to dependents who have no interest in the business and would prefer a cash sum
- Other shareholders losing control as a result of not having the resources to buy back lost shares
- Shares being taken over by a competitor
Benefits include:
- Transferring shares to remaining shareholders at a fair price
- Avoiding having to draw on funds set aside for other purposes
- Preventing the sale of shares to competitors
- making all transactions tax-efficient
- making all transactions tax-efficient
- Ensuring the financial security of the shareholders dependents
- Maintain continuity in the business
For more information about this and any other financial products please contact Newstead now.