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.