BUSINESS PROTECTION
Shareholder Protection
Help surviving shareholders retain control while providing fair value to an outgoing shareholder or their family.
Planning for the loss of a shareholder
If a shareholder dies or becomes seriously ill, their shares may pass to family members who would prefer cash, or to someone who does not share the company’s objectives. The remaining shareholders may want to retain control but lack the funds to purchase the shares.
Shareholder protection combines an appropriate insurance policy with supporting documentation so funds can be available following death or a specified critical illness.
Potential benefits
- Enable shares to transfer to surviving shareholders or the company at a fair commercial price
- Provide funds to purchase the shares without drawing on money reserved for other purposes
- Reduce the risk of shares passing to hostile parties or competitors
- Support business stability and continuity
- Maintain confidence among employees, customers and lenders
The plan has no cash-in value and cover will lapse if premiums are not maintained. Policy definitions, tax treatment and legal documentation require individual consideration and may change.
