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It is essential to cover your company against the loss of a shareholder and provide a financial safety net which will provide your business with both stability and security and ensures that your business will continue to prosper for many more years to come.
There are many dangers to losing a shareholder including:
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The remaining shareholders may not have sufficient funds to purchase the lost shares.
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The shares may go to the deceased’s family or even an inexperienced or reckless relative.
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The shares may even be bought or taken over by one of your competitors.
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Shareholder Protection will provide your company with the necessary funds and procedures to ensure that your company continues to operate with minimum disruption to it’s continuity and help to make sure that you remain in control.
Here are the main benefits of Shareholder Protection:
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Prevents the sale of your companies shares to a competitor or a hostile / reckless party.
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Ensures that the critically ill or deceased shareholders dependents gain quick access to the funds.
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Ensures a strong stability and continuity for your company.
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Enables the swift arrangement of the shares to be transferred amongst the remaining shareholders at a fair price and tax efficiently.
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Avoids using important funds which where set aside for other purposes.
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Each shareholder can each have an insurance policy which will cover their specific amount of shares that they hold within the company.
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