Corporate planning
The death or serious illness of a key director or employee can have far-reaching or even disastrous consequences for a business. While, the well-being of the individual concerned will likely be of paramount importance to you, at the same time you cannot afford to lose sight of the effect this event may have on your business.
When something beyond your control happens within your business, the negative impacts will often include:
- Loss of profits
- The recall of loans
- Reduced capacity
- Loss of key clients/contacts
- Reduced practical know-how
When these events do occur — and from time to time it’s almost an inevitable fact of life that they will — insurance is always the key.
Having the correct insurances in place and making sure that they are regularly reviewed and updated as your business changes, can be a particularly onerous task. Most businesses find they need some level of constructive help and advice to make sure that everything is planned out and organised in the correct manner.
As part of my corporate service, we will undertake an in-depth review of your business and work with you to implement a tailored insurance programme to help protect your business from a wide range of risks.
Shareholders
As a shareholder your focus is on working with your fellow shareholders to make your business successful.
However, what if the worst were to happen and you were to die?
Would your beneficiaries share the same goals for the business?
Your fellow shareholders may have to work with partners who have little or no interest in the business and your beneficiaries could find themselves in the unfortunate position of owning shares which nobody is prepared to buy.
As always, effective planning is key to ensure situations like this don’t arise.
We will identify your requirements and discuss potential solutions that will provide your fellow shareholders with the means to purchase your shares and allow your beneficiaries to realise the market value of your shareholding.
Share purchase assurance represents one element of succession planning and deals with the purchase and sale of shares following the death of a shareholder.
It will be an arrangement that ensures that the surviving directors can receive the deceased's shares in order to continue the business without involvement from external or inexperienced shareholders. Additionally, the deceased's estate receives a cash sum for the value of those shares.
Deciding whether share purchase is actually required — including why and how it should be structured — is fundamental to the process. We will help you make that decision.