Why Shareholder Protection?
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.
- 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.
- Helping to make all transactions tax efficient.
- Helping to ensure the financial security of the shareholder’s dependents.
- Maintain continuity in the business.