Director/Shareholder Business Protection

Why do I need Director/Shareholder Protection?

The loss of a shareholder can have a severe affect on a business. It may be that the spouse of the shareholder inherits the shares, which can lead to problems as the business doesn’t usually have the cash to buy back the shares.

The result could be that the spouse sells the shares to a competitor or wants to become involved in the business.

It could also be that the business drops in value as suppliers and customers get worried about the loss of the shareholder. This can result in the spouse having to sell the shares to a competitor at a price much less than previously available.

What is Shareholder Business Protection?

To allow the business to purchase the shares from the spouse at a fair price and ensure the business has the funds to do so, shareholder protection insurance should be taken out on all shareholders. Each policy is written in trust to the other shareholders and the sum assured paid to them is used to buy the shares from the remaining spouse if a claim is made. A cross option agreement is drawn up to ensure the rights of both parties.

How can I get Director/Shareholder Protection?

Our experience and expertise in this area allow us to efficiently assess your individual circumstances and provide the most suitable product for your individual circumstances. Contact us now to arrange an appointment and we will prepare a personalised quotation based on your requirements.