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.