Director's Share Protection

What is Share Protection?

A share protection arrangement is used by business owners to purchase shares following the death of a fellow partner or shareholder. A legal agreement provides the basis for the share purchase and details how the purchase can be made.

Share protection is designed to either:

  • Ensure that funds are available to allow either the business or other shareholders to purchase the shares, which would otherwise fall to the deceased Estate;
  • Or to enable the deceased’s personal representative/Estate to sell the shares in the business to the remaining business partners or shareholders.

Without an agreement and appropriate provision of funds the remaining shareholders will lose some control over their business, as the deceased’s representatives may look to sell the Shares to another third party, should the remaining Shareholders not be able to raise the necessary funds.

Goddard Perry can provide a comprehensive review of your share protection needs and ascertain your requirements to ensure that the right outcome is achieved with control remaining with the other shareholders.

Planning & Consulting

  • Initial Meeting to understand your business, how it works and it ownership structure.
  • How the loss of a business partner or shareholder can affect the ownership structure and how this can be mitigated.
  • Analyse any existing arrangements including the completion of a corporate factfind.
  • Carry out a market review.
  • Consultation and provision of advice regarding the key points of putting in a share protection arrangement including what options arrangement, trusts, policies to use and associated costs.

Implementation

  • Assistance with financial and medical underwriting.
  • Assistance with completion of trust documentation and provision of share agreement documentation.
  • Ensuring cover is in place and correct documentation is provided.
  • Ongoing Service
  • Review of the share protection agreement to make sure it still meets your requirements.
  • Help with any claim.

 

If you require more information or assistance regarding your Share Protection requirements, please email us.

Goddard Perry Consulting

THROUGH PREPARATION COMES STRENGTH

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