Making it smooth and easy
Our Corporate Solutions Team have the expertise to make the business insurance process smooth and easy.
The level of insurance can be calculated under different bases, such as multiples of business profits or salaries of the key personnel, or even a proportion of the payroll cost. There are many variables, all depending on the type and structure of the business such as Shareholder Protection.
Shareholder Protection is designed to pay a pre-determined lump sum to the business on the death or critical illness of a key shareholder. This can help the remaining shareholders when it is most needed.
Is Shareholder Protection a requirement for your business?
- Have you discussed the effect of the death of one of your fellow shareholders on the structure and ownership of the business?
- Do you have sufficient, readily-available assets to buy that person’s share of the business, or would their family like to remain involved?
- You may have a strong working relationship with your current colleagues, however, would you feel the same way working with their spouse, or their children?
- Would your family wish to remain involved in the business should anything happen to you, or would they prefer to sell the shares and release the capital?
- Would your family receive a realistic price from a third party if they were to sell them on, and is the marketability of the shares good in the instance of the business having lost a key decision maker?
- Do the company’s Articles of Association allow for a third party sale of shares, or are there specific restrictions on the transfer of shares which need to be considered?